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Nvidia Likely to Top Estimates, Offer Strong Guide, Wedbush Says

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Nvidia Likely to Top Estimates, Offer Strong Guide, Wedbush Says

Nvidia (NVDA) is expected to exceed Wall Street's first-quarter estimates and guide above consensus amid positive data points, Wedbush Securities said in a client note on Monday.

The brokerage expects the technology bellwether to report earnings of more than $1.80 per share, ahead of its $1.74 estimate. Revenue is seen beating Wedbush's $78.01 billion first-quarter revenue estimate by at least $2 billion, according to the brokerage.

Wedbush expects second-quarter EPS of $1.84 on sales of $82.12 billion. The company is scheduled to release its latest quarterly results Wednesday.

"We fully expect the leading supplier of (artificial intelligence) silicon will again exceed estimates and guide above Street given continued positive data points through (the calendar first quarter)," Wedbush analysts Matt Bryson and Antoine Legault said.

The brokerage expects healthy AI infrastructure spending to likely continue through 2027.

"While there remain some potential industry-wide speed bumps (Middle East plans amidst the war, uncertainty around future opportunities in China), if anything, we see the potential/eventual resolution of these issues as catalysts for increased future spend," Bryson and Legault added.

RBC Capital Markets last week projected Nvidia would deliver another strong quarter amid robust compute demand and issue an upbeat revenue guidance for the ongoing three-month period.

Wedbush pointed out Nvidia's supply chain resilience amid industry-wide bottlenecks in areas like advanced logic, memory, optical transceivers and hard disk drives.

"During our conversations with a variety of supply chain participants, we have encountered numerous bottlenecks that are throttling (or threatening to throttle) builds and deployments for a variety of specific participants in the AI ecosystem," Bryson wrote. "(Nvidia), however, to date has not been among those struggling with supply chain."

Wedbush reiterated its outperform rating on Nvidia's stock and maintained the $300 price target.

Price: $222.05, Change: $-3.27, Percent Change: -1.45%

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