UBS raised its price target for NVIDIA (NVDA) to $1,150 from $1,200 in a note Tuesday, maintaining a Buy rating on the stock ahead of the company's next earnings release on May 22.
The bank cited strong demand for its target increase. It also revised its revenue estimates for the company.
UBS analysts highlight the continuation of robust demand for Nvidia (NASDAQ:NVDA)'s Blackwell and Hopper products, despite potential shipment timing concerns. While Blackwell shipments are anticipated for December, UBS remains bullish on the sustained demand for Hopper, particularly emphasizing its strength ahead of a significant product transition.
The analysts note a noteworthy trend in Blackwell demand, particularly in system mix, prompting them to adjust their revenue and earnings estimates upward for calendar year 2025. UBS now expects revenue to reach approximately $175 billion and earnings per share to hit around $41, a significant increase compared to Street estimates of $136 billion and $30, respectively.
The increased mix assumptions for Blackwell, driven by strong demand for GB200 server racks, indicate a strategic shift for Nvidia towards becoming a full-stack provider. This shift aligns with the company's broader vision and could potentially lead to revenue stacking, further enhancing Nvidia's position in the market.