In their preview of Nvidia’s (NVDA) upcoming earnings report, Piper Sandler analysts said the AI chipmaker remains their top large-cap pick as they remain optimistic “that the Blackwell series will provide meaningful acceleration to revenues longer-term.”
“We continue to see strong demand for NVDA’s data center products and feel the company is set up for another beat and raise quarter,” the analysts said in a Thursday note, reiterating an Overweight rating on the stock.
They highlight that the demand for Hopper GPUs remains robust, with supply still catching up as the product is allocated.
Checks also indicate strong interest in the Blackwell GPU series across NVIDIA (NASDAQ:NVDA)'s data center customer base.
The analysts' bull case suggests total revenues could exceed expectations by $1.5B-$2.0B for April and a similar beat for July. Given high investor expectations, they expect the stock to be flat “to be slightly up” in this scenario.
“We continue to like the 2H trends that will come from new architecture sales given the TCO advantages for Blackwell. Additionally, our bull case for the July guidance sees revenues increasing another $2.5-$3.0 billion relative to the April quarter estimate of ~$24 billion.”