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NVIDIA: AI Demand Surge Fuels Massive Revenue Growth
16 Feb
Summary
- NVIDIA's CEO sees AI capital spending as appropriate for long-term growth.
- Analysts project over 36% upside potential for NVIDIA stock.
- UBS forecasts NVIDIA's fiscal fourth-quarter revenue to exceed guidance.
NVIDIA Corporation (NASDAQ:NVDA) is experiencing robust demand for its GPUs and compute-networking platforms, which are critical for AI workloads. CEO Jensen Huang recently described AI capital spending as "appropriate" within a long-term buildout, highlighting indicators such as "sky-high" demand and persistent compute constraints at leading AI firms.
Analysts maintain a strongly positive outlook, with over 90% bullish ratings as of February 13, 2026. The consensus price target of $250.00 implies a potential upside exceeding 36% for the company's stock.
UBS forecasts NVIDIA's fiscal fourth-quarter revenue to reach $67.5 billion, surpassing company guidance. For the first quarter of 2027, UBS anticipates $76 billion in revenue, aligning with broader market expectations of $74 to $75 billion, though potentially excluding China from guidance.
Goldman Sachs analysts also anticipate a "beat-and-raise" quarter, attributing this to favorable industry supply and demand dynamics. NVIDIA is scheduled to report its fourth-quarter and fiscal year 2026 results on February 25, 2026.
