Wedbush analyst Bryson expressed confidence in Nvidia’s long-term growth despite a tepid near-term forecast and limited sales in China, highlighting strong AI-driven demand and expanding adoption across Europe and the Middle East. He anticipates over 30% growth next year, with significant acceleration in 2027-2028 as AI inference becomes more widespread and data sovereignty gains importance.
In the discussion about Nvidia’s recent performance and outlook, the absence of sales in China was addressed, with the analyst expressing no long-term concern about Nvidia’s access to the Chinese market. It was noted that Nvidia had been allowed to ship to China in the previous quarter, and the revenue expectations from China for the upcoming quarter were low, which could actually be beneficial for the company’s organic growth metrics in the U.S. market. The focus remains on Nvidia’s overall outlook rather than isolated regional sales figures.
The market had largely anticipated strong results from Nvidia, with several analysts upgrading their expectations and price targets ahead of the earnings report. While Nvidia’s fiscal second-quarter results came in line with forecasts, the market had perhaps priced in slightly higher expectations. Historically, Nvidia tends to leave some growth potential “on the table,” and the current guidance suggests a revenue range that, if met, would satisfy most investors without disappointment.
Looking at Nvidia’s growth story, the analyst highlighted that the company is currently benefiting significantly from the testing and deployment of large AI models, which is driving much of its media revenue. However, only a small percentage of companies are currently realizing value from these models, indicating substantial room for growth as more businesses and consumers integrate AI inference into their workloads. This transition to real-world applications is expected to be a key revenue driver moving forward.
Geographically, Nvidia is seeing adoption and wins across Europe and the Middle East, with notable mentions of countries like France, Germany, Italy, Spain, and the UK. The importance of data sovereignty was emphasized, especially given Nvidia’s current revenue dependency on a few major hyperscalers, which account for about 40% of its income. Sovereignty and localized data control are expected to become increasingly critical factors in Nvidia’s growth strategy, particularly by 2026.
Looking ahead, the analyst expressed confidence in Nvidia’s ability to achieve over 30% growth next year, driven by continued model building and increased data center spending. The real growth acceleration is anticipated in 2027 and 2028, as AI inference applications become more widespread, fueling further investment in data infrastructure and consumer markets. Overall, Nvidia’s long-term growth prospects remain robust, supported by expanding AI adoption and strategic market positioning.