Nvidia (NVDA) is poised for a strong Q1 revenue, likely reaching $26 billion, owing to reduced lead times on chips, UBS Securities said in a note emailed Wednesday.
The mid-December initial shipment timing for the Blackwell processors has some investors concerned about the transition, UBS said. The launch of Blackwell chips is expected to drive even stronger demand for next-generation GB200 rack system for data centers, leading to increased revenue and EPS forecasts for next year, the note said.
But these concerns are likely overstated, the firm said, and recent talks with customers and supply chain assessments suggest strong demand for its graphics processing unit microarchitecture “Hopper” that will persist throughout the year.
Despite the sell side lagging in projections for 2025, UBS believes most investors expect EPS in the high-$30s, below its estimates following recent checks. With this demand outlook, “we would expect and hope to see another substantial upward move in aggregate purchase commitments after the number was only about flat last [quarter],” UBS said.
UBS expects the company’s Q1 revenue to be $26 billion and EPS of $6.01. Q2 revenue is projected at $28.8 billion, with EPS of $6.55.
UBS maintained its price target for Nvidia at $1,150 with a buy rating.