Technology

Nvidia (NVDA) will likely post strong Q4 results and Q1 guidance as recent investor worries about a “near term ‘air-pocket’ are overblown,” UBS said in a note to clients emailed Tuesday. Nvidia has “essentially tread water since last earnings” amid supply chain concerns and worries surrounding the ramp of Blackwell server racks, the investment firm said. However, “Blackwell chipset/compute board yields have inflected higher, and mix in both FQ4 (Jan) and FQ1 (Apr) is shifting very rapidly to Blackwell and away from Hopper,” said UBS analysts including Timothy Arcuri. Also, Nvidia “recognizes revenue when ODMs/OEMs take title of compute boards and we believe that in many cases end customers like the big hyperscalers are using a buy and sell model to leverage ODMs or their suppliers’ working capital, and in some instances may be providing bridge financing for this inventory,” the note said. In addition, the main hardware issue has

Nvidia (NVDA) is likely to post strong fiscal fourth-quarter results, despite certain concerns that have lingered since its last quarterly report, UBS Securities said in a note e-mailed Tuesday. The chip-making giant is scheduled to report fourth-quarter results Feb. 26. In November, its third-quarter earnings more than doubled year over year as demand for generative artificial intelligence propelled revenue above Wall Street’s estimates. “(Nvidia) has essentially tread water since last earnings, in part due to supply chain noise and concerns around the ramp of Blackwell server racks,” UBS analysts Timothy Arcuri and Grant Joslin said. UBS projects Nvidia’s fourth-quarter adjusted earnings at $0.95 a share on revenue of $42.15 billion. The Street is looking for $0.84 and $37.97 billion, respectively, according to UBS. The brokerage sees revenue from the Blackwell gen AI system at about $9 billion, up from its prior outlook of $5 billion, with the potential to reach

Nvidia stock has had a slow start to 2025 after back-to-back years of triple-digit gains — and that could soon become the new normal. Shares have climbed 2.6% to $137.71 so far this year — meaning the chip maker is only just outperforming the S&P 500, which is up 2%. Last year, Nvidia soared 171%, while the benchmark index rose 23%. That doesn’t mean investors should worry. Nvidia still dominates the market for the graphics processing units required to power artificial-intelligence programs — so its profit should keep rising as long as tech companies keep dipping into their pockets to splash the cash on AI. But there’s a sense on Wall Street that another year of eye-popping returns looks unlikely. The 66 analysts who cover Nvidia have set an average price target of about $176, according to FactSet data, which implies shares can climb 28% from their level as of

Looking to invest in artificial intelligence stocks this year and worried you’ve missed the boat? Don’t worry, a pivot away from obvious winners like Tesla and Nvidia is the solution. That’s according to Morningstar’s chief U.S. market strategist David Sekera, who believes investors will have to take a more selective approach to the theme in 2025. His view is based on the idea that Big Tech companies’ capital expenditure levels can’t carry on rising at such a fast pace, more than two years after the launch of OpenAI’s ChatGPT kicked off an AI spending war. “We’re not going to see that explosive increase in demand of the past two years again,” Sekera told Barron’s. “It will still increase, but we won’t see anywhere near the same upside surprises in spending on AI hardware as this megatrend is better understood.” That means Morningstar is more bearish than most on Nvidia, which