Why Wall Street Is Betting Big on Robotics Taking Nvidia Stock Higher

Nvidia (NVDA) is a Santa Clara-based semiconductor and accelerated computing powerhouse that has done something no company in history has achieved quite so dramatically: it developed the technology the world needs most at the exact moment the world needs it most. Founded in 1993 by CEO Jensen Huang, Nvidia both popularized and pioneered the GPU in the 90s. And has since built the most complete, most defensible AI infrastructure platform on Earth, spanning Blackwell and Vera Rubin compute architectures, NVLink interconnects, the CUDA software ecosystem, DGX AI supercomputers, Omniverse, and the emerging physical AI and robotics stack.

Nvidia Stock Stumbles Near Term

NVDA trades around the $195 mark, with the stock down 6% over the past month and about 1% for the week, though shares remain up nearly 26% over the past year, holding within a 52-week range of $151.49 to $236.54. Despite recent weakness tied to AI valuation concerns, Nvidia continues trading near record highs reached earlier this spring, with a market capitalization exceeding $4.6 trillion.

Compared with the broader S&P 500 Information Technology Sector ($SRIT), which has climbed roughly 19% year-to-date (YTD) on AI-driven semiconductor strength, Nvidia's recent pullback suggests the stock has underperformed its tech peers in the near term, even as it remains the index's largest weighted component at nearly 8%.

Nvidia Posted Strong Q1 Results

Nvidia delivered Q1 FY2027 revenue of $81.62 billion, up 85% year-over-year (YoY), surpassing the analyst consensus of approximately $78.8 billion, while diluted EPS of $1.87 surged 140% YoY and 18% sequentially, comfortably beating the $1.77 Street estimate. Data Center revenue hit a record $75.2 billion, up 92% YoY and 21% sequentially, driven by surging Blackwell GPU demand from hyperscalers, neoscalers, sovereign AI deployments, and enterprise customers simultaneously scaling their AI factories at unprecedented speed.

Non-GAAP gross margins came in at 75%, dramatically recovering from Q1 FY2026's 61%, which had been severely depressed by a $4.5 billion H20 export charge, while core operating profit surged 147% YoY to a 65.6% operating margin. Nvidia announced an $80 billion expansion of its share buyback authorization and raised its quarterly dividend to $0.25 per share, while Vera CPU revenues are expected to contribute meaningfully starting Q3 FY2027, with the company guiding for over $20 billion in CPU revenue this fiscal year.

For Q2 FY2027, management guided revenue of $91 billion, well above the $86.84 billion Wall Street consensus, while noting the guidance assumes zero Data Center compute revenue from China following tightened U.S. export restrictions. CFO Colette Kress confirmed that Vera Rubin will ship in Q3 FY2027 and ramp aggressively, with Nvidia's multi-generation roadmap, Blackwell, Vera Rubin, and Feynman, ensuring the company remains at least two to three years ahead of any credible competitor in the AI-accelerated computing race.

Analysts Are Bullish

Nvidia's shares edged higher in Monday trading after Bernstein analysts reaffirmed their “Outperform” rating on the chipmaker, pointing to its strengthening position in the robotics computing space. The firm highlighted Nvidia's role in developing processors that effectively serve as the "brain" for robotic systems, enabling them to interpret sensor inputs, reason through decisions, and execute actions in real time.

Bernstein noted that compute and software platform providers, with Nvidia and Qualcomm (QCOM) leading the charge, are well positioned to build durable competitive moats in this emerging category. The reiterated bullish stance underscores growing analyst confidence in Nvidia's expanding footprint beyond traditional AI and data center applications into physical AI and robotics infrastructure.

What Do Analysts Say About NVDA Stock?

Bernstein's reiterated “Outperform” rating reflects growing conviction in Nvidia's ambitions in robotics and AI infrastructure, reinforcing the bullish narrative already shared by much of Wall Street. The broader analyst community echoes this optimism with NVDA stock carrying a consensus "Strong Buy" rating from 49 analysts, including 43 “Strong Buy,” three “Moderate Buy,” two “Hold,” and just one “Strong Sell” recommendation. 

The mean price target of $301.92 implies a substantial 52% upside from current levels, suggesting analysts see meaningful room for growth as Nvidia extends its dominance from AI computing into emerging robotics applications.