UBS reiterated a Buy rating and a $280.00 price target on Nvidia ahead of the company's fiscal second-quarter earnings report, expecting the chipmaker to beat its July quarter revenue guidance by approximately $3 billion to $4 billion. The bank also projects October quarter revenue guidance of $107 billion to $108 billion, with Rubin GPU shipments accelerating as Blackwell production winds down.
UBS reiterated a Buy rating and a $280.00 price target on Nvidia ahead of the company's fiscal second-quarter earnings report. The firm expects Nvidia to beat its July quarter revenue guidance by roughly $3 billion to $4 billion, reaching as much as $94 billion to $95 billion in total revenue.
Nvidia shares currently trade at $226.16 with a P/E ratio of 34.54, and InvestingPro analysis suggests the shares remain undervalued relative to their Fair Value estimate.
The company has posted revenue of $253.49 billion over the last twelve months with a 71% year-over-year growth rate.
Rubin ramps as Blackwell winds down
UBS projects Nvidia will guide October quarter revenue in the $107 billion to $108 billion range, with actual revenue potentially exceeding $110 billion as Blackwell products remain stable and Rubin units begin contributing ahead of a larger revenue increase in the fourth quarter. The firm anticipates Rubin sell-in will accelerate toward 500,000 GPU units per month while Blackwell production winds down.
Supply still lags demand
UBS expects the earnings call to give investors greater confidence in a path to over $15 in earnings per share for calendar 2027 and $20 for calendar 2028. The firm noted that compute supply growth continues to lag demand, partly because the majority of hyperscaler capital expenditure increases this year stem from memory price inflation. UBS said it may hear about another significant increase in backlog during the earnings call.
Source: Investing.com
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