Jefferies sees more room for Nvidia gains amid Blackwell ramp By

-- Nvidia (NASDAQ:) is Huanma Forex app downloadset to report earnings next week and analysts at Jefferies expect another strong quarter for the AI darling.

The investment bank believes Nvidia will beat revenue expectations and raise future guidance, driven by the ramping up of its Blackwell processors and continued growth of the Hopper GPU lineup.

In a note released Thursday, Jefferies analysts said Nvidia is likely to outperform the consensus revenue estimates of $33 billion for October, projecting a $34 billion figure, which is $1.5 billion above the company's guidance of $32.5 billion.

For January, they forecast Nvidia will beat the the consensus $36.6 billion estimate with a projected $38.1 billion in revenue.

Jefferies’s optimism is partly rooted in the strong performance of NVIDIA's Blackwell processors, with revenue for this product expected to be around $4 billion in the third quarter and anticipated to accelerate to $9 billion in the fourth quarter.

The Hopper GPUs are also expected to continue their growth trajectory, complemented by the H20 product line, which is projected to increase from $1.8 billion in the third quarter to $4.2 billion in the fourth quarter.

Accordingly, analysts revised their estimates for the chipmaker. Although they acknowledge that Street estimates for the next year are rising, with some as high as $6 of earnings per share (EPS), Jefferies cautions that these forecasts might assume overly aggressive average selling prices (ASPs).

“While we are very positive on the unit upside, we would highlight that many of these estimates may be baking too aggressive ASPs,” analysts led by Blayne Curtis noted.

As such, their own estimates are based on approximately 6 million GPU units, leading to data center revenue closer to $180-200 million, compared to buy-side expectations in the $205-215 billion range.

Jefferies reiterated a Buy rating on Nvidia shares ahead of the earnings print and raised the target price from $150 to $185.

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