NVIDIA Corp. (NASDAQ:NVDA) shares fell more than 2% Monday as weakness in technology stocks weighed on the chipmaker ahead of its Aug. 26 earnings report.
The Nasdaq fell 0.78%, the S&P 500 slipped 0.19% and the Technology sector dropped 1.5%.
• NVIDIA shares are experiencing downward pressure. Why are NVDA shares declining?
Nvidia is entering its next phase of AI growth as Blackwell Ultra shipments rise, Vera Rubin begins its initial ramp and the company expands across compute, networking, software, infrastructure and financing.
Cantor Sees Nvidia Expanding Beyond GPUs
Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and $350 price forecast on Nvidia.
Muse believes investors underestimate Nvidia’s ability to sustain growth as it expands beyond GPUs into networking, rack-scale systems, software, infrastructure and financing. While custom silicon could pressure Nvidia’s unit share at hyperscalers, he expects the company’s broader system strategy to support more resilient revenue share.
Muse outlined stretch-case EPS of $16 to $17 in calendar 2027 and $23 to $25 in 2028. Cantor expects hyperscaler capital spending to approach $1 trillion in 2026 and potentially reach $1.5 trillion in 2027.
He estimates Nvidia could generate about $400 billion in calendar 2026 data center revenue with roughly 80% of a $500 billion AI accelerator and networking market.
By 2030, Cantor’s scenarios imply data center revenue of about $1.05 trillion at 60% market share, $1.23 trillion at 70% and $1.4 trillion at 80%. Muse considers 60% share a bear case and estimates Nvidia could still produce $25-$30 in EPS by 2030.
JPMorgan Expects Another Beat and Raise
JPMorgan analyst Harlan Sur reiterated an Overweight rating and $280 price forecast.
Sur expects fiscal second-quarter revenue of $94 billion-$95 billion, up about 15% sequentially and ahead of the $92.1 billion Street consensus. He projects GB300 and remaining GB200 rack shipments will rise about 15% quarter over quarter to 17,000-18,000 units.
For the October quarter, Sur expects Nvidia to guide revenue to $107 billion-$108 billion, compared with the $104.5 billion consensus.
He projects rack shipments will increase another 13% to 14% to 19,000-20,000 units, including the first 1,000-2,000 Vera Rubin racks. Sur estimates Vera Rubin could lift blended average selling prices by 5% to 10% and reduce per-token platform costs by about 90% versus Blackwell Ultra.
Sur also estimates every 100,000 H200 GPUs shipped to China could add roughly $3 billion in revenue.
Competition, Margins Remain in Focus
Sur expects GPUs and ASIC/XPU platforms to move toward roughly equal shares of the AI compute market over the next several years, while Nvidia retains overall leadership.
He expects near-term gross margins in the mid-70% range but sees rising memory costs as a longer-term risk. Nvidia trades at roughly 17 times Street calendar 2027 EPS and 13 times 2028 EPS, according to Sur.
Earnings and Price Action
Nvidia will report earnings on Aug. 26.
Wall Street expects EPS of $2.07, up from $1.04 a year earlier, on revenue of $92.03 billion versus $46.74 billion.
NVDA Price Action
Nvidia shares were down 2.14% at $210.13 at the time of publication on Monday, according to Benzinga Pro data.
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