Nvidia Gets a Rubin Boost

This article first appeared on GuruFocus.

Nvidia (NVDA, Financials) rose after SemiAnalysis said the company's data center revenue could come in well above Wall Street expectations later this year.

Warning! GuruFocus has detected 3 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator.

The research firm expects Nvidia's second-half fiscal 2027 data center computing revenue to be about 20% higher than current consensus forecasts.

The reason is supply. SemiAnalysis said earlier HBM4 memory issues that slowed the Vera Rubin platform have been resolved, while wafer supply has improved. That could allow Nvidia to ramp shipments faster in the second half.

Vera Rubin is Nvidia's next major platform after Blackwell. It is expected to begin reaching major cloud customers this fall, including AWS, Google Cloud, Microsoft Azure and Oracle Cloud.

The platform uses HBM4 memory, which offers much higher bandwidth than the prior generation. That matters for cloud providers trying to train and run larger AI models more efficiently.

There is still some uncertainty. SemiAnalysis said Nvidia changed the Rubin Ultra design from its original version, and Nvidia has not publicly commented. Even so, the report suggests Wall Street may still be underestimating Nvidia's next data center wave.

View Comments