Bullish Expectations for Next Quarters
The brokerage indicated that it sees “upside to numbers for both the July and October quarters” based on strong U.S hyperscaler spending and the return of China revenues. Piper forecasts July-quarter revenue of around $45.1 billion, near Nvidia’s guidance and Wall Street estimates slightly below at $45.7 billion.
While the forecast is conservative, analyst Harsh V. Kumar pointed out that the firm’s history of modest beats is backed this time through the relief of supply constraints. October quarter figures should see a big boost from China sales, predicted between $5.5 billion and $6.5 billion.
China Revenues All Set to make a Comeback
Kumar pointed out that the continued shipments to China, facilitated by a recent “15% cut of revenue” pact with the Trump administration, may fuel a critical acceleration in orders. Even though the deal reduces gross margins on Chinese sales to about 60% from Nvidia’s overall low of 70%, the margins of H20 chips are still”at par or slightly higher” than the firm’s wider product range. The analyst estimates China demand would be as high as $6 billion just in the October quarter, expanding at 12–15% in other normal quarters thereafter. On existing terms, yearly sales from the region would reach $50 billion by fiscal 2027.
Hyperscaler Expenditure Stays Robust
In the U.S, hyperscale capital spending is “elevated and resilient,” with top cloud players indicating sustained investment in compute capacity in the coming years. This pattern of spending is likely to support Nvidia’s revenue growth, with demand staying ahead of supply. Kumar also indicated that gross margins in October and January quarters would benefit from a momentary increase in selling previously banned H20 chip inventory, adding another tailwind to earnings.
Market Position
At $183.16, Nvidia now trades at 29.8x Piper’s fiscal 2027 non-GAAP EPS estimate of $6.15, in contrast to a peer group average multiple of 26.9x. The new $225 target suggests a 37x multiple, which Piper allocates to continued “peer multiple expansion” in the group. With U.S and Chinese customer demand both expected to pick up speed and lift the supply constraints, Piper sees Nvidia well-poised to continue its leadership in AI and high-performance computing.
A Steady Growth
Piper’s bullish call isn’t just any random feeling of optimism, rather it’s a strategic sparkle at Nvidia’s strange market position, which is a combination of tech innovation leadership, pricing leverage, and geopolitical flexibility. On the other hand, the China revenue outlook is particularly quite intriguing. While the 15% revenue concession deal with the Trump administration will clearly drag down margins, it will also reopen a huge market just as AI adoption starts to surge around the world.
This strategic reduction seems like a game of chess, where one must sacrifice a pawn (margin) to save the queen (dominance over the long term). Bringing in the hyperscaler capex that won’t quit, along with relaxed supply shortages, and the chances of Nvidia again defeating guidance, the $225 target begins to look less like a hype and more like the base of a longer path.
Nvidia is no longer merely a chipmaker, it’s a force that’s defining the AI economy’s foundation. Piper’s price target increase serves as a reminder that markets value not only growth, but value a steady and a strategically directed growth. Yes, risks still persist from supply glitches to political instability, but the company’s flexibility is as precious as its GPUs.
If the earnings beat the forecast once again, the discussion could soon turn from whether Nvidia can continue its streak to how much this AI rocket can actually soar. In today’s technology world, being irreplaceable is the biggest competitive edge, and Nvidia currently has that throne and is sitting comfortably on it.
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