New Street Research has added Nvidia to its roster of top recommendations for 2026 after analyst Pierre Ferragu said the chipmaker's most recent order disclosures point to long-term revenue potential that is materially stronger than current investor expectations.
Ferragu's conclusion was grounded in remarks Nvidia Chief Executive Jensen Huang made at this weeks GTC, in which Huang said: "I see, through 2027, at least $1 trillion." New Street Research described market reaction that treated that figure as largely in line with expectations as "misplaced," arguing instead that the comment suggests Nvidia "will likely materially beat 2027 expectations."
The firm contrasted Huang's latest estimate with an earlier statement at GTC Washington in October 2025, when Huang said Nvidia had "visibility into $0.5 trillion" of cumulative Blackwell and early Rubin demand through 2026. Ferragu wrote that the update this week implies "Nvidia added $500bn of orders since October," and that the company is now "on a run rate of more than $1tn per year for orders today."
On the basis of that trajectory, New Street Research concluded Nvidia could reach a $1 trillion run-rate business by the end of 2027. The firm said that conclusion "forces us to add the stock to our best idea list for 2026," placing Nvidia alongside AMD and TSMC on that list.
Ferragu also set out a valuation perspective tied to those revenue assumptions, writing that, at such revenue levels, Nvidia could deliver more than $20 of earnings per share and that the shares trade at "less than 10x this today."
The report includes a separate note referencing a screening tool: "ProPicks AI evaluates NVDA alongside thousands of other companies every month using 100+ financial metrics. Using powerful AI to generate exciting stock ideas, it looks beyond popularity to assess fundamentals, momentum, and valuation. The AI has no bias - it simply identifies which stocks offer the best risk-reward based on current data with notable past winners that include Super Micro Computer (+185%) and AppLovin (+157%)."
Context and implications
New Street Researchs upgrade rests on management commentary and the firm's interpretation of order-book momentum. The firm emphasizes the potential for Nvidia to materially exceed consensus 2027 expectations and highlights a substantial change in order levels since the prior October disclosure.
The note led New Street Research to add Nvidia to a short list of top ideas for 2026, together with AMD and TSMC, and to quantify the potential upside in per-share earnings under the higher revenue scenario.