Nvidia (NASDAQ:NVDA) earnings are just around the corner and the Street appears to be getting ready for what has become an almost traditional routine – another beat-and-raise readout from the AI giant.
Analysts are already predicting a strong showing, with Susquehanna’s Christopher Rolland, one of the top 1% of Street stock experts, being the latest to join the chorus.
That said, Rolland does add a note of caution to the proceedings. “We still expect better results/guidance as checks around AI remain solid, though we note near-term risks around a potential GB200 delay,” said the 5-star analyst.
What Rolland is referring to is the design fault in Nvidia’s latest AI chip, the Blackwell GB200, which has caused a delay in its shipments.
Nevertheless, for its Data Center segment, which now commands more than 85% of the total revenue haul, AI demand “continues to be helped by expanding hyperscale capex plans and commentary from players like Tesla suggesting sustained large GPU purchases.”
Moreover, demand is expected to get an additional boost from Enterprise/Consumer Internet (which last quarter represented over 50% of DC revenue) and from Sovereign AI. On the supply side, Nvidia has reaffirmed that Hopper GPU availability is improving, supported by reports of shorter lead times and price reductions. Positive remarks from supply chain partners like Supermicro also indicates favorable conditions for the supply and demand of Nvidia’s GPUs.
On the subject of the Blackwell delay, Rolland says investors “deserve some explanation and reassurances around re-spin/renewed timetable.” If the delays are by as much as three months, Rolland expects GB200 revenues will be pushed into 2025, which will contrast with Jensen Huang’s previous statement that the company is expecting “a lot” of Blackwell revenue this year.
In any case, as “architectural hurdles, including liquid cooling, will take time to qualify by customers,” Rolland was already preparing for a “slower ramp” of the GB200. In the meantime, given improving supply and availability, Hopper GPUs (H100/H200) should pick up the slack.
“In short,” Rolland summed up, “we expect another strong report but note elevated expectations into the print, with the narrative around the Blackwell ramp important to drive further upside in the stock.”
All told, Rolland continues to view Nvidia as having “one of the largest opportunity sets ahead and at a reasonable multiple,” reaffirming his Positive (i.e., Buy) rating on the shares with a $160 price target, implying a 27% upside in the coming months. (To watch Rolland’s track record, click here)
Rolland’s take chimes well with most of the other stock prognosticators on Wall Street. Based on a mix of 37 Buys against 4 Holds, the stock claims a Strong Buy consensus rating. The average price target stands at $144.17, offering one-year upside of ~16%. (See Nvidia stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
