NVIDIA Corp is expected to see upside to its fiscal Q2 results and fiscal Q3 guidance amid sustained cloud service provider and enterprise artificial intelligence demand, Oppenheimer said Tuesday.
The technology giant is scheduled to report fiscal Q2 results Aug. 28. Oppenheimer expects non-GAAP earnings of $0.62 per share on sales of $28.04 billion, which would represent a 108% year-over-year gain.
"Lead times have normalized, though supply remains tight, gated by advanced packaging capacity," Oppenheimer analysts Rick Schafer, Wei Mok and Dustin Fowler said in a note. "We expect mix to initially favor NVL36 (vs. NVL72), as it best accommodates existing [data center] infrastructure. China seems de-risked at (roughly) 5% of DC sales."
The brokerage raised its fiscal 2025, 2026 and 2027 adjusted EPS estimates to $2.70, $3.77 and $4.43, respectively, from $2.62, $3.32 and $4.11 as supply improves, according to the note.
Oppenheimer reiterated its outperform rating and a $150 price target on the Nvidia stock. The analysts said they see the company as best positioned in AI and continue to be long-term buyers.