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DBS Says Nvidia Growth Outlook Keeps AI Rally Away From Bubble Territory

October 5, 2026 at 03:35 EDT

Infra & Chips
Finance

DBS said Nvidia's projected earnings growth and valuation make the AI-led technology rally look short of classic bubble territory, reframing the debate around whether profits are keeping pace with prices. The October 5 view centers on Nvidia as the market's bellwether for AI infrastructure demand, because its chips and systems sit between frontier-model developers, cloud platforms and the data-center financing boom valuation view.

Oct. 5, 2026 | DBS and Nvidia

Growth, not just hype

Nvidia's profit and revenue outlook underpins the case that the AI stock rally remains short of classic bubble territory, while financing risks still matter.

70%

FY2028 revenue outlook

$96.2B

Q2 total revenue

$89.0B

Data Center revenue

$108B

Q3 revenue outlook

Q2 revenue is mostly AI infrastructure

Each stacked block represents roughly $10 billion. Data Center accounted for nearly all of Nvidia's Q2 revenue.

$96.2BQ2 revenue

$89.0BData Center

2028 outlook reset

Each block equals 5 percentage points. Nvidia's supply-constrained outlook sits above the prior analyst view.

70%Nvidia outlook

45%Prior analyst view

Fundamental case

Revenue and EPS are expanding at scale, and AI capex is presented as earnings-backed growth.

Risk case

Forecasts depend on infrastructure buildout, financing access and broad adoption; circular arrangements can blur end demand.

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