Wall Street thinks that Nvidia Corp. will report $24.5 billion in quarterly sales, which is 240% more than the same time last year. The company’s earnings report is next Wednesday.
Tim Arcuri, a financial analyst at UBS, thinks that number could go up even more. He wrote on Tuesday that Nvidia NVDA, +3.58% could make “potentially as high as $26 billion” in April quarter sales and that the company could make between $27 billion and $28 billion this quarter. The analysts that FactSet tracks think that the current quarter will bring in $26.5 billion.
He wrote that those two numbers were “good enough to keep the stock biased higher in our view.”
As the day ends on Wednesday, Nvidia shares are up 3.7%.
However, the stock is still surrounded by a lot of uncertainty. One such question is whether Nvidia is ready for a “air pocket” later this year, given the timing of when its new Blackwell chip lineup will begin shipping to customers.
“This probably won’t be answered or talked about on this earnings call, but we think these worries are generally overblown after recent conversations with customers and work on the supply chain that suggests Hopper will remain sold out at least until the end of this year,” Arcuri wrote. Hopper is the company’s current line of chips.
Another interesting picture that Arcuri sees is what will happen after Nvidia starts shipping the Blackwell line. He says that there is “very strong GB200 demand” for the Grace Blackwell product.
Arcuri raised his revenue prediction for Nvidia for calendar year 2025 from $147 billion to about $175 billion at the end of last month. He wrote at the time that “supply-chain work suggests this may still be too low, so even these new numbers leave a fair amount of slack/headroom for upside.”
In the report released on Tuesday, he also said that Wall Street might not be giving the company its due credit: “While most of the sell side still appears way behind the curve on [calendar 2025], we believe most investors are in the high-$30s [earnings per share]—still below where we are post this round of checks.”
Arcuri thinks that Nvidia’s stock is a good buy and sets a target price of $1,150.
