Susquehanna maintains a Strong Buy rating on NVIDIA Corporation (NVDA.US): GB300 shipments continue to increase, and the release of Vera Rubin is imminent.

Investment bank Susquehanna pointed out that NVIDIA Corporation (NVDA.US) will release its second-quarter results for fiscal year 2026 on August 26. The market is expected to see a continued ramp-up of the GB300 GPU before the next-generation Vera Rubin product line is officially launched. Susquehanna analyst Christopher Rolland stated in a report sent to clients: We expect NVIDIA Corporations quarterly results and next quarter guidance to exceed expectations, with a steady ramp-up of the GB300, while Vera Rubin will begin to contribute incremental revenue gradually in the second half of 2026. He reminded that last quarter, NVIDIA Corporation reorganized its data center business, adjusting the original Compute and Networking segments into two new divisions: Hyperscale and AI Cloud and Enterprise and Industrial (ACIE). Notably, the demand for AI computing power is receiving strong support from the continued increase in capital expenditures by hyperscale customersthe total capital expenditures of the top five hyperscale vendors are expected to nearly double in 2026, and the outlook for 2027 is similarly optimistic, with the market projecting total capital spending to exceed $1 trillion that year, representing a year-on-year growth rate of over 40%. Moreover, Rolland maintains a Buy rating for NVIDIA Corporation with a target price of $275 and indicates positive results from industry chain research on the ACIE division, particularly highlighting the recent exclusive commitment from SpaceX (SPCX) as significant. Interestingly, SpaceX has publicly discussed its plans for scaling computing power, aiming to rapidly expand from about 2 gigawatts by the end of 2026 to 10 gigawatts by the end of 2027. This presents a direct benefit to NVIDIA Corporation as this development will bring substantial incremental demand (although we estimate the actual scale to be closer to 6 gigawatts rather than 10 gigawatts). Rolland further noted that other data points during the quarter were also constructive, such as SSI reaching a long-term cooperation agreement with NVIDIA Corporation, planning to use the Vera Rubin system to increase computing power by an order of magnitude. Rolland also mentioned that NVIDIA Corporation reaffirmed its revenue target of over $1 trillion for the combined Blackwell and Rubin product lines from 2025 to 2027 and pointed out that new product lines like the Vera CPU rack and Groq LPX rack could bring substantial upside potential to this target. Additionally, multiple supply chain checks confirm that Rubin is still on track for release in the second half of 2026, although it is expected to face supply constraints throughout its lifecycle. Finally, the revenue from the Chinese market for NVIDIA Corporation could be limited, and Rolland indicated that revenue from the China region is currently not included in their model due to the uncertainty in the regulatory environment.