Nvidia (NVDA) is expected to beat estimates and raise guidance on strong Vera Rubin demand and cloud spending, BofA Securities said in a note emailed Monday.
The company is set to report Q2 results after the market closes on Aug. 26.
BofA said it expects the company to report revenue of $94 billion to $95 billion, about $3 billion to $4 billion above its $91 billion guidance, with the potential for a 3% to 4% increase in guidance to $107 billion to $108 billion, compared with the sell-side estimate of about $104 billion.
The expected upside is supported by the start of next-generation Vera Rubin shipments, the ramp-up of new Vera CPUs, and continued strength in cloud capital spending, the firm added.
The firm said key areas to watch include the Vera Rubin launch and supply update, as well as any changes to Nvidia's $1 trillion-plus 2025-2027 forecast. Investors will also look for more clarity on OpenAI vendor financing, according to the note.
BofA maintains its buy rating and $350 price target and views Nvidia as a top sector pick.
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