NVIDIA (NASDAQ:NVDA, XETRA:NVD)’s latest GTC 2026 presentations reinforced its position as a leader in AI data center computing, according to analysts from Bank of America and Baird who pointed to strong demand, expanding infrastructure, and new high-margin opportunities.
Bank of America maintained its ‘Buy’ rating and $300 price target, citing improvements in “tokenomics across every AI tier” as a driver of sales, margins, and free cash flow.
The analysts believe that NVIDIA’s new SRAM-based LPX systems could serve a previously unaddressed roughly 25% of ultra-low-latency AI workloads, which may generate significantly higher profits than the remaining 75% of tiers.
The firm also highlighted that NVIDIA’s $1 trillion-plus data center sales outlook for 2025 to 2027 does not include additional products, including LPX and CPU systems, which could add up to 50% more total addressable market.
They also pointed to NVIDIA’s improved efficiency in AI token generation, with costs per million tokens falling to roughly $6, supporting long-term gross margins. Bank of America noted that NVIDIA’s offerings now extend across all model builders, including open-source platforms, and its non-hyperscaler workloads, which currently represent 40% of total workloads, could grow to 70% over time.
Baird, which maintains an ‘Outperform’ rating and the same $300 target, highlighted the $1 trillion-plus cumulative Blackwell and Rubin purchase orders for 2025–2027, implying over 50% year-over-year revenue growth for 2028.
“Customers are desperate for more compute,” the analysts quoted CEO Jensen Huang as saying, emphasizing demand from private AI companies.
Baird also pointed out that the Vera Rubin platform, integrating GPUs, CPUs, LPUs, DPUs, networking, and storage, is now in full production, with partner availability expected in the second half of 2026. The integration of Groq 3 LPX is expected to boost inferencing throughput dramatically, delivering “up to 35x higher inferencing throughput per megawatt and up to 10x more revenue for trillion parameter models.”
Both firms underscored NVIDIA’s strategic push into full-stack AI solutions, highlighting the company’s ability to expand revenue and profitability through new high-performance systems and integrated inferencing platforms.
Shares of Nvidia were little changed at $182 on Wednesday afternoon, up more than 57% in the last 12 months.