UBS Affirms Buy on NVIDIA, $280 PT

UBS analyst Timothy Arcuri reiterated a Buy rating and $280 price target on NVIDIA (NASDAQ: NVDA).

“We expect NVDA to beat FQ2 (July) revenue by ~$3-4B (e.g. as much as ~$94-95B) and we see FQ3 (Oct) revenue guidance in the ~$107-108B range (and revenue ultimately coming in at $110B+) as Blackwell is holding stable with Rubin units starting to layer in ahead of what should be a more substantial revenue step-up in FQ4 as Rubin sell-in accelerates toward ~500k GPU units/ month and Blackwell starts to wind down.

Because many of the debates around AI infrastructure spend/ROI and credit risk are out of NVDA’s hands, we think the numbers are more important than the narrative and coming out of this call, we expect investors to gain greater confidence in a path to $15+ EPS in C2027E and $20 in C2028E – numbers that should keep the stock grinding higher.

Looking at compute through the lens of supply and demand, because the vast majority of hyperscaler capex increase this year is due mostly to memory price inflation, compute supply growth is even further from keeping pace with demand – this is ultimately bullish for NVDA and as a result, we may hear about another significant stair-step in backlog on this earnings call.”

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