Nvidia (NVDA) is likely to post a fiscal Q1 beat due to positive data points through the quarter, healthy ongoing AI infrastructure spend and superior supply chain certainty amid ongoing constraints, Wedbush Securities said in a Monday research report.
The healthy AI spending backdrop is driven by the rising growth rate of CSP investments and neocloud investments, as well as expectations of data center buildouts to expand in 2027, analysts wrote.
The company is scheduled to report its fiscal Q1 results Wednesday.
Multiple bottlenecks are throttling builds and deployments for participants in the AI ecosystem, but Nvidia remains largely insulated from supply chain disruptions, according to the note.
Considering Nvidia's superior supply chain positioning, revenue shortfalls or meaningful share gains by rivals appear unlikely as long as end-market growth for AI remains robust and components remain constrained, Wedbush added.
For Q2, the company will generate absolute revenue growth in the low double-digit billions, implying that it will likely guide to the upper $80 billions with the high end at more than $90 billion. The investment firm said such sales levels would push its EPS outlook close to $2.
Wedbush reiterated its outperform rating on the stock and maintained its price target of $300 per share.
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