UBS said in its report that NVIDIA (NVDA.US) 's 1FQ results ended 28 April and guidance were much better than expected. NVIDIA's management noted that the demand will continue to outpace supply in 2025, extending revenue visibility farther into the future. However, the group did little to address investor concerns that Blackwell could experience delivery disruptions on wafers before delivery.
NVIDIA is transitioning from its current Hopper AI platform to the more advanced Blackwell system. The concern is that whether customers will be more cautious in placing Hopper orders before more Blackwell devices are launched later this year, creating an air pocket for the wafers. The complexity of these wafers also poses a challenge in accelerating production.
Additionally, and more unexpectedly, NVIDIA's enterprise customer base is finally starting to broaden, with revenues from country-driven projects growing much faster than expected, minimizing NVIDIA's reliance on large U.S.-based cloud service providers (CSPs).
The broker raised its EPS forecast, and TP from US$1,150 to US$1,200, and maintained a Buy rating.
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