Deepwater's Munster previews NVIDIA's key earnings report next week

LootboxPhobia · 2026-02-21T21:25:01+00:00

NVIDIA's upcoming earnings report is expected to show strong recent growth, but investors are more focused on developments beyond 2026. As demand for AI infrastructure increases, market expectations for growth in 2026 have been raised to 55%. Although the stock price has risen modestly, analysts believe NVIDIA's future growth potential may be underestimated, especially in reasoning and physical AI sectors.

LootboxPhobia

2026-02-21 21:25:01

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Investing.com - According to a preview report released by Deepwater Asset Management on Friday, NVIDIA Corporation (NASDAQ: NVDA) is expected to report stronger recent growth in its upcoming earnings, but investors are increasingly focused on the company’s trajectory beyond 2026.

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Munster stated that as demand for AI infrastructure remains strong and hyperscale cloud providers continue to increase capital expenditure plans, market consensus expectations for growth in the 2026 calendar year have risen from about 50% earlier this year to approximately 55%.

Despite the upward revision in expectations and positive progress in AI applications, NVIDIA’s stock has only risen modestly over the past month, highlighting a broader debate described by Munster: the market’s focus is on the sustainability of growth in 2027 and 2028, rather than near-term fundamentals.

The report notes that stronger capital expenditure guidance from companies like Amazon and Google indicates that major clients remain committed to expanding AI infrastructure, despite market doubts about the return on aggressive spending.

Munster expects NVIDIA’s comments will reinforce the view that GPU and AI computing demand remains robust, potentially supporting near 65% growth in 2026, above current Wall Street expectations.

In the upcoming earnings report, investors may focus on several topics, including Chinese demand, long-term opportunities for inference workloads, and the company’s ventures into “physical AI,” which covers robotics, autonomous driving systems, and real-world applications.

Munster believes that over time, inference could become much larger than AI training scale, and although physical AI currently accounts for a small portion of revenue, it could become a major growth driver later in this decade.

While recent demand appears solid, Munster states that a key question for investors is whether NVIDIA’s growth will sharply slow after 2026 or continue at a high pace as AI applications expand. The company believes the market may be underestimating long-term growth potential, and if AI infrastructure remains in its early stages, revenue growth in 2027 could surpass current forecasts.

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