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AI darling Nvidia (NASDAQ:) will report its second-quarter outcomes of fiscal 2025 on Aug. 28, with vital consideration anticipated on administration’s feedback concerning potential delays within the launch of its next-generation Blackwell (BW) chip, the corporate’s capacity to fulfill demand, and the continued influence of China sanctions.
Stifel analysts stated Monday their discussions with trade members revealed that any delays are more likely to be measured in months fairly than quarters. Within the interim, suggestions on the demand for H-Sequence chips stays constructive.
In consequence, the funding financial institution once more expects a beat-and-raise situation for Nvidia’s upcoming outcomes and steering.
“We’re not anticipating any significant change in tone or messaging relative to what NVDA has targeted on because the firm reported its F1Q outcomes, i.e. the corporate’s longer-term highway map and continued funding in natural and collaborative software program choices,” Stifel analysts stated in a observe.
Furthermore, they consider that current commentary from optical transceiver module provide chain corporations signifies quickly rising cluster sizes, which may gain advantage the chipmaker forward of the calendar yr 2025.
Individually, UBS analysts stated they see upside to Nvidi’a July print, anticipating continued energy from the information middle phase, which might attain as excessive as $26 billion, above the Avenue’s estimate of $25 billion.
Key bullish indicators embody sturdy outcomes from SMCI pushed by Hopper demand, vital quarter-over-quarter progress in high-performance computing for TSMC, strong leads to KYEC’s information processing phase, and robust AI server gross sales from Quanta Laptop.
Nevertheless, Taiwan’s information processing export information suggests a decrease determine, although analysts observe this information’s historic variability and its exclusion of crucial Nvidia income streams like H20 ramping in China and networking.
For steering, UBS expects sturdy demand for Hopper and H200 to drive Nvidia to information towards $31-32 billion, with an implied information middle income near $28 billion.
“We consider investor bogeys are already on this vary (Avenue income is ~$31.5B) which optically does not create an ideal setup, however we consider Blackwell commentary will overshadow wherever steering comes out as traders are already trying to the BW ramp in 2025, and we consider NVDA will typically talk that BW is “on observe”,” stated UBS analysts.
The primary concern is how Nvidia will tackle its earlier assertion about anticipating “vital” Blackwell income this yr, which analysts consider was unrealistic on condition that buyer quantity shipments have been initially set for mid-December and have now been delayed by 4-6 weeks.
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