TLDR
- Susquehanna analyst Christopher Rolland reiterated a Buy rating on NVDA with a $275 price target, citing stronger demand visibility ahead of the Vera Rubin launch
- Rolland expects Nvidia to beat Q2 FY27 results and raised his data center revenue estimate to $1.1 trillion through calendar year 2027
- The top five hyperscalers are expected to nearly double capex in 2026, with capital spending projected to grow over 40% and surpass $1 trillion in 2027
- NVDA opened at $224.09 on Thursday, with Wall Street holding a Strong Buy consensus based on 36 Buy ratings and one Hold, and an average price target of $309.94
- Institutional investors own 65.27% of NVDA, while insiders sold around 1.9 million shares worth $410.6 million last quarter
Nvidia (NVDA) is set to report Q2 FY27 earnings on August 26, and Wall Street is watching closely. The stock opened at $224.09 on Thursday, up 3%, against a 52-week range of $164.07 to $236.54.
Susquehanna analyst Christopher Rolland reiterated his Buy rating on NVDA ahead of earnings, keeping his price target at $275. He summed up his view in one line: “Demand Visibility Strengthens Ahead of Rubin Launch.”
Rolland ranks 32nd among more than 12,400 analysts tracked by TipRanks, with a 65% success rate and an average return of 41.5% per rating over a one-year period.
He expects Nvidia to deliver better-than-expected results and a strong outlook, driven by the accelerating GB300 rollout. The Vera Rubin platform is expected to begin contributing in the second half of 2026.
Hyperscaler Spending Fuels Demand
One of the key tailwinds Rolland points to is surging capital spending from the top five hyperscalers. They are now expected to nearly double their capex in 2026, with spending forecast to grow more than 40% and top $1 trillion in 2027.
Rolland also flagged SpaceX’s exclusive collaboration with Nvidia for its AI infrastructure, including the Vera Rubin platform. SpaceX plans to grow compute capacity from roughly 2 GW at the end of 2026 to a potential 6 GW by end of 2027, per Rolland’s estimates.
Safe Superintelligence Inc. signing a long-term deal with Nvidia was another positive data point. Nvidia also reaffirmed its revenue target of more than $1 trillion from Blackwell and Rubin across calendar years 2025 to 2027.
Rolland raised his data center revenue estimate and now projects about $1.1 trillion through calendar year 2027. He believes new product lines like the Vera CPU rack and Groq LPX rack could push that figure even higher.
On gross margins, Rolland expects results in line with guidance. Nvidia has been targeting margins in the mid-70s range, though pressure is possible in the second half due to the Rubin ramp.
Institutional Interest Remains Strong
First Financial Bank Trust Division increased its NVDA stake by 31.8% in Q2, adding 21,129 shares to bring its total to 87,484, valued at approximately $17.5 million. Institutional investors as a group own 65.27% of NVDA.
Several large investors also moved in during recent quarters. Norges Bank added a new position worth around $62.2 billion. Laurel Wealth Advisors grew its holdings by over 15,000%.
On the analyst side, the consensus remains firmly bullish. NVDA carries an average Buy rating with a consensus price target of $305.94, implying upside of around 38% from Thursday’s open.
Nvidia posted Q1 revenue of $81.61 billion, up 85.2% year over year, with EPS of $1.87, beating the $1.76 consensus estimate. The company also authorized an $80 billion share buyback and raised its quarterly dividend from $0.01 to $0.25.
CoreWeave’s CEO recently said the company is booking Nvidia A100 systems through 2029 at full pricing, pushing back on concerns about older GPU depreciation.
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