TLDR
- SemiAnalysis says Nvidia’s data center revenue could beat Wall Street estimates by 20% in the second half of fiscal 2027
- Earlier HBM4 memory supply issues have been resolved, clearing the way for faster production
- Nvidia began full Vera Rubin production on June 1, with shipments expected this fall
- NVDA opened at $200.09 on Wednesday, down over 11% in June
- Analysts hold a Strong Buy consensus with an average price target of $303.84
Nvidia stock opened at $200.09 on Wednesday, after falling more than 11% in June. Now, semiconductor research firm SemiAnalysis says the sell-off may have been overdone.
The firm published a report saying Nvidia’s data center compute revenue could come in 20% above Wall Street consensus estimates in the second half of fiscal 2027. That’s a big call, and the firm says it’s backed by supply chain checks — not just models.
SemiAnalysis says its forecasts draw on data from chip materials suppliers, manufacturers, server makers, and major cloud companies. That’s a wider lens than most Wall Street estimates.
The key driver? Supply constraints that weighed on production earlier in the year have largely cleared. HBM4 memory supply issues have been resolved, and front-end wafer supply has also improved.
That sets the stage for a faster ramp of Nvidia’s next-generation Vera Rubin AI platform than the market currently expects.
Vera Rubin Ramp
Nvidia began full production of Vera Rubin on June 1. Shipments are expected to start this fall.
Major cloud providers are lined up to deploy it, including AWS, Google Cloud, Microsoft Azure, Oracle Cloud, CoreWeave, Lambda, Nebius, and Nscale.
Vera Rubin uses HBM4 memory, which delivers roughly three times the bandwidth of the previous HBM3e generation. That matters for customers training and running large AI models.
Industry publication DigiTimes had reported the transition from Blackwell to Vera Rubin should wrap up during the second quarter of 2026, which would position Nvidia well for the second half.
SemiAnalysis put it plainly on X: “We are seeing a huge second half ramp for Nvidia this year.”
Institutional Buying and Earnings
While retail investors were selling in June, some institutions were quietly adding. Oak Family Advisors increased its Nvidia stake by 29.1% in Q1, bringing its holding to 16,469 shares worth around $2.87 million.
Blue Trust Inc. also added to its position, boosting holdings by 27.3% to 186,451 shares. Eagle Capital Management grew its stake by 486.9% in the quarter, though from a smaller base.
Institutional investors now hold 65.27% of NVDA stock.
Nvidia’s most recent quarterly results gave those buyers something to feel good about. The company reported EPS of $1.87, beating the $1.76 estimate. Revenue hit $81.61 billion, above the $78.42 billion forecast, and up 85.2% year over year.
The company also raised its quarterly dividend from $0.01 to $0.25 per share, and authorized an $80 billion stock buyback.
Analyst coverage remains firmly positive. TipRanks shows a Strong Buy consensus from 36 Buy ratings and one Hold over the past three months. The average price target sits at $309.33, implying roughly 55% upside from current levels.
MarketBeat’s data puts the consensus at “Buy” with an average target of $303.84, based on 3 Strong Buy, 48 Buy, and 3 Hold ratings.
Wells Fargo has an Overweight rating with a $315 target. Robert W. Baird stands out with a $500 target. Truist Financial recently raised its target to $307.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Be the first to comment