- Analyst Gene Munster projects NVIDIA sales could grow 65% this year and 40% in 2027, exceeding consensus estimates.
- Catalysts include higher cloud company spending, booming AI inference demand, and a potential resolution to the China sales holdup.
- The chip giant is set to report Q4 results Wednesday, with analysts forecasting a 67% revenue surge to $65.7 billion.
- Despite strong past performance, NVDA stock has been muted year-to-date, and current trader sentiment is bearish.
As Nvidia prepares to release its fourth-quarter financial results this Wednesday, tech analyst Gene Munster of Deepwater Management offers a bullish long-term outlook, arguing Wall Street is underestimating the AI chipmaker’s growth runway. He details his projections in a recent blog post. Consequently, he forecasts sales will surge 65% this year and 40% next year, well above analysts’ expectations of 55% and 28% growth, respectively.
Munster contends the massive AI data center buildout is only in its “second innings.” He cites soaring capital expenditure from cloud giants and rising demand for AI inference, a stage where Nvidia’s chips excel. “Investors are left with a basic question: do you believe inference will be significantly bigger than training, that physical AI is a large market, and that Nvidia can maintain its advantage versus custom silicon,” Munster wrote.
A key variable is the potential resolution to Nvidia’s halted business in China. CEO Jensen Huang has pegged the Chinese market as a $50 billion revenue opportunity. Munster notes that if sales resume this year, 2026 growth could exceed 70%. Meanwhile, he identifies “Physical AI” applications like robotics as a major future driver, potentially growing from $3 billion today to over $50 billion annually by 2030.
For the immediate quarter, analysts expect revenue to rise 67% to $65.7 billion, according to data from Koyfin. However, Nvidia stock has traded in a narrow range recently, reflecting investor uncertainty. The share price is up just 1.8% year-to-date, though this still outpaces the broader S&P 500. Current sentiment on the platform Stocktwits shows a ‘bearish’ reading among traders.
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