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Analysts Boost 2026 AI Chip Outlook as Nvidia Stays ‘Sold Out’ and Micron Posts Record Quarter

Supply constraints alongside record AI spending underpin 2026 projections.

Overview

  • Nvidia reiterated in its latest quarter that cloud GPUs are sold out as supply lags demand, with analysts citing a massive multi-quarter backlog tied to Blackwell and Rubin roadmaps.
  • Bernstein reaffirmed Nvidia at Outperform with a $275 target, arguing the shares trade near decade‑low relative valuations even as earnings estimates rise and China sales could provide upside once clarified.
  • Micron reported record fiscal Q1 results of $13.6 billion revenue and $4.78 adjusted EPS, guided sharply higher for the current quarter, and credited AI-driven HBM, DRAM, and NAND demand and tighter supply.
  • Raymond James estimated potential 2026 revenue upside of $7–$12.5 billion for Nvidia and $500–$800 million for AMD if GPU shipments to China resume, though reporting on approvals remains conflicting.
  • Reports described a non-exclusive licensing agreement between Groq and Nvidia and a roughly $20 billion Groq asset purchase by Nvidia, which have not been confirmed by the companies.