On Friday, Deepwater Asset Management’s managing partner Gene Munster said that investors are underestimating NVIDIA Corp.’s (NASDAQ:NVDA) long-term AI-driven growth as the chip giant heads into its earnings report.
AI Utility And Capex Surge Shape Nvidia Earnings Outlook
In a post on X, Munster said he expects revenue guidance for calendar 2026 to come in ahead of expectations but argued that “the real question is: what about 2027?”
“My take: Growth in CY27 will be closer to 40% vs. the Street at 28%,” he wrote.
He also shared a blog post in which Munster said that Wall Street currently models about 55% revenue growth for 2026 for Nvidia, up from earlier estimates near 50%.
Munster believes commentary from CEO Jensen Huang suggests growth could exceed 65%.
He pointed to two major developments: clearer real-world AI utility and a sharp rise in capital spending from hyperscalers such as Amazon.com, Inc. (NASDAQ:AMZN) and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.
While markets have questioned returns on that spending, Munster said it signals conviction from “the buyers closest to the AI opportunity.”
2027 And Beyond: Inference, China And Physical AI
Munster also said that the longer-term debate centers on inference demand, China exposure and emerging “physical AI” applications, including robotics and autonomous systems.
He argued inference could be significantly larger than training over time, creating a sustained demand cycle for Nvidia’s GPUs.
Regarding China, he noted, the Street is not pricing in a major upside scenario, leaving room for potential surprise.
Nvidia Earnings Date Set For Feb. 25
NVIDIA is set to release its earnings on Feb. 25, 2026. In recent years, the chipmaker’s quarterly results have become some of the most highly anticipated announcements of the earnings season.
In November, Nvidia posted third-quarter revenue of $57 billion, marking a 62% increase from a year earlier. The figure topped Wall Street’s consensus estimate of $54.88 billion, according to Benzinga Pro data.
NVIDIA continues to show a solid price trend across the short, medium and long term, though it carries a weak value rating, according to additional metrics from Benzinga’s Edge Stock Rankings.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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