UBS anticipates revenue of around $46 billion for the second quarter and projects third-quarter revenue could hit between $54 billion and $55 billion, excluding China.
Nvidia Corp.(NVDA) continues to gain support on Wall Street as analysts lifted their price targets ahead of the company’s highly anticipated second-quarter (Q2) earnings report, expected on August 27.
UBS has raised its price target to $205 from $175 while maintaining a ‘Buy’ rating. The firm anticipates revenue of around $46 billion for Q2 and projects third-quarter (Q3) revenue could hit between $54 billion and $55 billion, excluding China, as per TheFly.
Nvidia stock inched 0.3% lower in Thursday’s premarket. On Stocktwits, retail sentiment toward the stock improved to ‘bullish’ from ‘neutral’ territory the previous day. Message volume shifted to ‘normal’ from ‘low’ levels in 24 hours.
A bullish Stocktwits user said, ‘Nvidia is disconnected from the fear, doom, and gloom of the business snooze!’
UBS believes Nvidia’s compute-related revenues will expand by 20% to 25% on a sequential basis. Using a Q2 baseline of $35 billion, that increase could translate into an additional $7 billion to $8 billion for Q3.
Meanwhile, Wedbush has upped its target to $210 from $175 and kept an ‘Outperform’ rating, citing ‘ubiquitously positive’ hyperscaler spending trends in Q2. According to the firm, demand for Nvidia’s chips has remained ‘robust’ throughout the quarter, sometimes outpacing available supply. Wedbush also noted that shipments for Nvidia’s GB300 server processors appear on schedule for late Q3 or Q4 delivery.
As momentum builds around Nvidia’s AI dominance and demand, the outlook from both UBS and Wedbush suggests expectations are climbing higher into the Q2 results.
The chip giant sees Q2 revenue of $45 billion, plus or minus 2%. As per Fiscal AI data, analysts expect Nvidia’s Q2 revenue to be $45.8 billion and earnings per share (EPS) to hit $1.00. The company is expected to release the results on August 27.
Nvidia’s stock has gained over 30% year-to-date and over 36% in the last 12 months.
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