GB200/GB300 is expected to see significant volume growth in the fourth quarter, UBS maintains a "Buy" rating on NVIDIA

According to Zhitong Finance APP, ahead of NVIDIA's (NVDA.US) earnings report, UBS raised its target price for the stock from $175 to $205 while maintaining a "Buy" rating, stating that its "momentum remains strong."

Analyst Timothy Arcuri stated, "We believe overall demand signals remain strong (with Texas's Oncor receiving about 40 gigawatts of 'high confidence' new load requests for data centers, although some may involve duplicate orders to 'secure positions'), and we expect NVIDIA's performance guidance to reflect this strong backdrop—its GB200/GB300 rack partners have indicated that they expect to achieve 30,000 rack deployments this year, with significant ramp-up in the fourth quarter."

The company is optimistic that after reaching an agreement with the U.S. government, it could generate billions of dollars in revenue each quarter, allowing it to sell H20 chips in exchange for 15% of the revenue.

The institution is optimistic that after reaching an agreement with the U.S. government, NVIDIA could increase its revenue by billions of dollars each quarter. The agreement allows it to sell H20 chips and receive 15% of the revenue in return.

"We expect second-quarter (July) revenue to be around $46 billion (about $1 billion above expectations from the previous quarter), and third-quarter (October) revenue guidance, excluding the Chinese market, to be around $54-55 billion, potentially reaching $57 billion if including the Chinese market. Based on our research on the production supply chain, we estimate that the business revenue for the second quarter at $35 billion could see a quarter-over-quarter increase of 20-25% in the third quarter—this alone could bring about $7-8 billion in quarter-over-quarter growth. We are slightly cautious about the data center network business due to supply chain issues with 800G product shortages, but we still believe the third-quarter target of $6 billion in network revenue is achievable (with a quarter-over-quarter increase of nearly $1 billion)."

"In summary, it is reasonable to expect total data center revenue of $49 billion in the third quarter, while the gaming business will face greater growth pressure due to a high base in the first quarter. Regarding the Chinese market, there may be some H20 inventory that can be reused after impairment provisions, but we believe NVIDIA has placed new Hopper wafer orders after obtaining H20 licenses and is still developing the Blackwell version—we think it is likely that the U.S. government will increase the sales license limit to China as part of the agreement."