Jefferies predicts that Nvidia will beat on earnings and raise estimates for this quarter, given the firm’s “rock-solid” data points. Nvidia is likely to post $95 billion in revenue for the second quarter and $108 billion in revenue for the third quarter, a team of analysts led by Blayne Curtis said.
Rubin is also likely to see strong growth, with the ramp accounting for more than 40% of Nvidia’s total revenue by the end of the fiscal year.
“Positioning looks favorable given low valuation and new product cycle,” the analysts wrote said.
Jefferies pointed to lingering questions about energy costs amid the data center buildout, with demand for AI chips growing at a faster pace than the energy grid expected to support the required power.
“We remain bullish on AI over the long-term, but will be interested in hear commentary from management on any potential plans to address what seem to be a collection of headwinds set to impact the pace of deployment,” the note said of the risks.
Jefferies issued a “buy” rating and a $300 price target for Nvidia, implying 40% upside for shares.
