Nvidia's Strong Position#
New Street Research has added Nvidia to its “best idea list for 2026.” Analyst Pierre Ferragu believes that the company's recent order figures suggest a much stronger long-term revenue potential than what investors currently anticipate.
Insights from Leadership#
Ferragu referenced comments made by Nvidia's CEO, Jensen Huang, during this week's GTC (GPU Technology Conference). Huang indicated that he expects Nvidia to achieve at least $1 trillion in revenue through 2027. New Street Research argues that the market's reaction, which sees this figure as aligning with expectations, is incorrect. They believe it indicates that Nvidia is likely to exceed current revenue forecasts for 2027.
Order Growth#
The research firm highlighted Huang's earlier remarks from GTC Washington in October 2025, where he mentioned that Nvidia had visibility into $0.5 trillion of demand for its products through 2026. Ferragu noted that the latest update shows Nvidia has added $500 billion in orders since then, putting the company on track for over $1 trillion in orders annually.
Future Outlook#
New Street Research concludes that the trajectory of Nvidia's orders suggests it could operate at a $1 trillion revenue run rate by the end of 2027. This optimistic outlook has led them to include Nvidia in their best ideas list for 2026, alongside other companies like AMD and TSMC. Ferragu also mentioned that at these revenue levels, Nvidia could generate over $20 in earnings per share, while its shares currently trade at less than 10 times that figure.