TLDR
- Wall Street analysts from Wolfe Research, Bank of America, and Citi maintain bullish ratings on Nvidia stock despite China export restriction concerns
- Wolfe Research projects Nvidia could generate $300 billion in revenue from Blackwell and Rubin chips in 2026, representing 20% upside to previous forecasts
- Average selling prices are rising over 50% generation-on-generation from Blackwell to Rubin chips, driving growth alongside volume increases
- Bank of America points to $500 billion in data center orders for 2025-26 as evidence of strong demand, with potential 70% year-on-year earnings growth
- Analysts estimate Nvidia could achieve $8 earnings per share in 2026, putting the stock at a reasonable 25x earnings multiple
Wall Street analysts are recommending investors buy Nvidia stock. Three major firms issued bullish calls on the chipmaker.
Wolfe Research, Bank of America, and Citi all maintained positive ratings on the stock. The analysts say China export restrictions won’t hurt near-term earnings.
Chris Caso from Wolfe Research highlighted Nvidia’s recent GTC event disclosures. The information suggests earnings will beat current Wall Street expectations for 2026.
Wolfe Research estimates Nvidia will generate around $300 billion in revenue from its Blackwell and Rubin chips next year. This represents about 20% upside to the firm’s previous forecasts.
The research house projects earnings per share of approximately $8 for calendar year 2026. At current prices, this would value the stock at 25 times earnings power.
Wolfe Research views this valuation as reasonable given the growth trajectory. The firm believes both volume and pricing are driving Nvidia’s expansion.
Pricing Power Strengthens
Average selling prices are climbing more than 50% from one chip generation to the next. The price increase from Blackwell to Rubin chips shows Nvidia’s pricing power.
A potential China-oriented GPU product could add to sales. This would provide another revenue stream for the company.
Wolfe Research thinks Nvidia’s data center revenue could exceed forecasts by up to $85 billion in 2026. This would translate to around $8 earnings per share.
The $8 figure represents roughly 30% upside to Wolfe’s current estimates. The firm bases this on disclosed information from the GTC event.
Strong Order Book
Bank of America analyst Vivek Arya reiterated his buy rating on the stock. He addressed recent skepticism about artificial intelligence spending levels.
Arya called concerns about AI investment “healthy but overstated.” He pointed to concrete order data to support his view.
Nvidia has $500 billion in data center orders lined up for 2025-26. This order book points to continued strong demand for the company’s products.
Bank of America expects earnings growth of 70% year-on-year. This projection assumes the order book converts to revenue as expected.
The analyst noted that skepticism about AI spending has grown in recent months. Some investors worry that companies are overinvesting in infrastructure.
However, Arya believes the order book data contradicts this narrative. The $500 billion figure suggests enterprise demand remains robust.
All three firms dismissed China export restrictions as a concern. The analysts view these limitations as having minimal impact on Nvidia’s financial performance.
The restrictions have been a topic of investor concern for several quarters. However, the firms believe other markets provide sufficient growth opportunities.
Wolfe Research estimates data center revenue upside could reach $85 billion above consensus for 2026. Bank of America points to $500 billion in confirmed orders spanning 2025-26 as evidence of sustained demand.
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