Nvidia (NVDA) is "best positioned" to deal with supply constraints in the industry that limit growth, Wedbush said in a Thursday note.

CEO Jensen Huang implied that unconstrained demand would underpin growth of about 100%, compared with the 70% it can supply, the report said, backing view that the bottleneck in the industry is procurement and not a lack of customer demand.

Supply and capacity commitments increased to $279 billion from $119 billion, mostly due to new agreements related to memory, according to the note.

The report also pointed to Nvidia's forecasts of gross margin down to 74% in fiscal Q3, hitting a low point of 71% to 72% in fiscal Q4, and then stabilizing at 72% to 73% in fiscal 2028, with price increases offsetting the impact of higher memory costs.

Wedbush reiterated its outperform rating and raised its price target to $345 from $330.

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