Nvidia Corp (NASDAQ:NVDA, ETR:NVD) should deliver strong fourth-quarter results and guidance despite concerns around supply chain issues and its latest Blackwell chips, according to UBS analysts.
“Guidance and investor concerns around a near-term ‘air-pocket’ are overblown,” the bank said in a note.
Despite shares having “trod water” since Nvidia last reported in November, UBS said investors should “rise above the noise”.
Blackwell chipset and compute board yields were likely to have grown as the new graphics processing units made up an increasingly larger share of sales.
Hyperscalers could also be helping to finance purchases temporarily to ensure steady supply and avoid delays, UBS said, while the likes of bottlenecks improved.
Forecasts were reiterated as a result, with UBS seeing fourth-quarter revenue at US$42 billion, before US$47 billion in the first.
A sharper-than-expected ramp in Blackwell volumes was set to offset falling sales of older chip models over both quarters, analysts added, as reports of customers turning to prior models to avoid delays appeared overstated.
‘Buy’ was the rating, as UBS also reiterated a US$185 share price target.
Shares were up 0.8% at US$138.76 in pre-market trading.