Nvidia (NVDA) reported results and guidance ahead of expectations, driven by sustained AI-related demand across its GPU and data center segments, with strong Blackwell demand and Rubin chips on track for a Q3 ramp, RBC Capital said in a Thursday note.
RBC highlighted accelerating data center momentum driven by demand outpacing hyperscaler capex trends, with strength in Blackwell GPUs, rising networking demand, and growing confidence in non-hyperscale AI workloads, including sovereign and enterprise segments, according to the report.
The analyst noted upside from Nvidia's CPU strategy, particularly the Vera CPU, seen as a roughly $20 billion revenue driver this year. RBC also pointed to share gains among frontier model developers and AI cloud providers, as well as strong networking growth, reinforcing Nvidia's position across the AI infrastructure stack.
Despite valuation and long-term AI infrastructure spending debates, RBC expects strong double-digit growth for Nvidia through calendar 2027. The brokerage believes that the growth is supported by ongoing AI adoption, rising compute demand, and a strong product cadence with ecosystem advantages sustaining momentum amid evolving competition.
RBC maintained its outperform rating on the stock while raising its price target to $270 from $250.
Nvidia shares were down 2% in Thursday trading.
Price: $218.91, Change: $-4.56, Percent Change: -2.04%