There is scope for the world’s most valuable company to become even more valuable, according to the equities experts at UBS.
Nvidia Corp, whose bleeding-edge microchips have powered the artificial intelligence revolution, could post “strong enough results and guidance to keep the stock moving higher”, the bank said in a research note.
That is despite Nvidia soaring past Apple Inc (NASDAQ:AAPL, ETR:APC), Microsoft Corp (NASDAQ:MSFT) and everything else in its way to become a $3.5 trillion company at the time of writing.
UBS analysts expect Nvidia to post third-quarter revenues of between $34.5 billion and $35 billion, with fourth-quarter guidance tipped at $37 billion.
These forecasts are comfortably above Nvidia’s own third-quarter guidance of $32.5 billion (plus or minus 2%) outlined in August.
Nvidia, however, is inclined to provide conservative guidance given the market’s proclivity to expect chunky revenue beats from the chipmaker.
The market’s lofty expectations of multi-billion-dollar, AI-charged revenue beats culminated in a $270 billion whacking in September, when the chipmaker’s second-quarter sales underwhelmed despite clocking in 122% higher year over year at $30.04 billion.
Nvidia’s quarterly earnings have become the de facto bellwether for the broader AI industry, so investors will be taking notes when the group reports on Wednesday, 20 November.
In the meantime, UBS has a buy rating on the stock with a $185 price target.
Shares are currently swapping for $145.36 with a $3.57 trillion market cap.