NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) should stick to a trend of edging past expectations as the company prepares to unveil first-quarter results on the back of ongoing healthy demand.
That’s according to Deutsche Bank analysts, which noted the post-close update would mark one year since NVIDIA’s market-changing report in May 2023.
“We expect the company to continue its trend of delivering healthy multi-billion dollar beats [and] raises on still healthy demand for AI compute,” analysts said in a note.
The bank acknowledged some may be putting off orders before the release of NVIDIA’s latest Blackwell graphics processing unit, expected this year.
However, “we still expect aggregate demand trends to remain healthy,” Deutsche added, likely meaning NVIDIA’s near-term guidance will be unaffected.
NVIDIA had guided in February for revenue to come in around US$24 billion this year, alongside gross margins of roughly 76.3%.
“Overall, we remain impressed by NVIDIA’s best-in-class technology roadmap and believe AI fervour by its customers is likely to be sustained, yielding yet another strong quarter,” Deutsche said.
Highlighting “already well-understood” fundamental strength, Deutsche reiterated a ‘hold’ rating for NVIDIA, as well as a US$850 share price target, down 5% on Monday’s close.