A top tech investor flags 2 reasons Wall Street is underestimating Nvidia as it heads toward earnings

Nvidia will deliver the most hotly anticipated earnings results of the season next week, and one top investor thinks Wall Street isn’t bullish enough ahead of the chip giant’s report.

Gene Munster, founder of Deepwater Asset Management, is still bullish on Nvidia despite worries that its results could show a deceleration in growth and a cooling of the AI trade. Munster argues that the boom times for Nvidia will continue for at least the next two years.

In a post this week, he argued that skeptics on Wall Street aren’t accounting for CEO Jensen Huang’s most recent comments about the company’s plans. The stock is up 40% in 2025, outpaced by rivals like AMD and Intel.

In his earnings preview, Munster noted two major reasons some analysts are cautious.

“First, it is unclear how much supply they will ultimately have on hand,” he stated. “Second, there are 60 analysts covering the company, and not all have changed numbers. Of the analysts that have raised numbers, they have increased their revenue outlook by about 6% for next year.”

Munster highlighted Huang’s statements from the Nvidia Global Technology Conference on October 28. During his address, the CEO shared some platform updates and optimistic forecasts regarding future revenue.

In Munster’s view, these projections are reason enough to remain bullish on Nvidia stock in the coming year.

“Jensen gave a Blackwell and Rubin revenue target that suggested there is more than 10% upside through the end of CY26. I expect CY26 revenue forecasts to increase from the current 39% outlook to 45%,” he said.

He added that Wall Street currently expects 59% revenue growth in 2025, 39% in 2026, and 22% in 2027.

Munster sees a Catch-22 in the trends surrounding the company. If Nvidia’s guidance is weak, investors will naturally regard it as a sign that the market is softening. Yet, if it comes in too strong, some may assume that the tech giant’s capex spending is too extensive.

He also acknowledged the recent news that Softbank has dumped its entire Nvidia stake to shift investment to OpenAI. But Munster seems unfazed and remains confident that Nvidia still has room to run.

“I believe we are still early in the AI buildout, and Nvidia’s position remains unchallenged,” he noted. “That should result in growth being higher than investors expect over the next couple of years.”