Nvidia Earnings Report Overview

Investing.com — Nvidia (NASDAQ:NVDA) is set to report earnings next week, and analysts at Jefferies expect another strong quarter for the AI darling.

Positive Outlook from Jefferies

The investment bank believes Nvidia will beat revenue expectations and raise future guidance, driven by the ramping up of its Blackwell processors and the continued growth of the Hopper GPU lineup.

In a note released Thursday, Jefferies analysts stated that Nvidia is likely to outperform the consensus revenue estimates of $33 billion for October, projecting a $34 billion figure—$1.5 billion above the company's guidance of $32.5 billion.

January Estimates

For January, they forecast Nvidia will exceed the consensus $36.6 billion estimate with a projected $38.1 billion in revenue.

Drivers of Growth

Jefferies’s optimism is partly rooted in the strong performance of NVIDIA's Blackwell processors, with revenue expected to be around $4 billion in Q3, accelerating to $9 billion in Q4. The Hopper GPUs are also anticipated to continue their growth, with the H20 product line projected to increase from $1.8 billion in Q3 to $4.2 billion in Q4.

Revised Estimates

Consequently, analysts revised their estimates for the chipmaker. Although they note rising Street estimates for the next year, some as high as $6 of earnings per share (EPS), Jefferies cautions that these forecasts might assume overly aggressive average selling prices (ASPs).

“While we are very positive on the unit upside, we would highlight that many of these estimates may be baking too aggressive ASPs,” analysts led by Blayne Curtis noted.

As such, their own estimates are based on approximately 6 million GPU units, leading to data center revenue closer to $180-200 million, compared to buy-side expectations in the $205-215 billion range.

Investment Recommendation

Jefferies reiterated a Buy rating on Nvidia shares ahead of the earnings print and raised the target price from $150 to $185.