William Blair Maintains Outperform Rating on Nvidia (NVDA)

NVIDIA Corporation (NASDAQ:NVDA) is one of the 11 Best Revenue Growth Stocks to Buy Now. On July 15, William Blair reiterated an Outperform rating on NVIDIA Corporation (NASDAQ:NVDA) while noting that the company could see potential earnings upside from renewed access to the China market.

William Blair sees an opportunity for NVIDIA Corporation (NASDAQ:NVDA) to increase its EPS for fiscal year 2026 by an additional $0.30. This is based on the idea that the company will see about $20 billion in revenue from China for the full year.

William Blair Maintains Outperform Rating on Nvidia (NVDA)

In the first quarter, NVIDIA Corporation (NASDAQ:NVDA) made $5.5 billion in revenue from the China market. William Blair expects another $14.5 billion in revenue from China, concentrated in the second half of fiscal 2026.

The investment firm also highlighted potential gross margin tailwinds in the second half as NVIDIA Corporation (NASDAQ:NVDA) might sell H20 chips that were previously written off with a low cost of goods sold. This could help the company achieve its target of a mid-70% gross margin on a non-GAAP basis.

NVIDIA Corporation (NASDAQ:NVDA) is an American multinational technology company that is known for its graphics processing units (GPUs), AI hardware and software, and high-performance computing (HPC) solutions.

While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NVDA and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.