NVIDIA's (NVDA, Financial) stock has remained relatively stable since its last reported quarterly earnings. Optimism surrounding the production of Blackwell chips has led investment company UBS to expect higher-than-anticipated revenues from NVIDIA's new production line. UBS analyst Timothy Arcuri has maintained a target price of $185 for NVIDIA.
In a client report, Arcuri stated that the yield for Blackwell chips has improved, with a rapid shift in production focus from Hopper to Blackwell expected in the coming quarters. According to Foxconn's latest results, any hardware issues NVIDIA may face have shown significant improvements recently. The company is already delivering B200 and GB200 processors to its partners, with rack deliveries underway.
Arcuri further explained that NVIDIA's revenue from Blackwell could reach approximately $9 billion by early next year, surpassing the previous forecast of $5 billion. The supply chain capacity is reportedly capable of supporting up to $14 billion. However, revenues from Hopper are expected to decline during the same period. NVIDIA's data center revenue projections stand at $42 billion for the last quarter of this fiscal year and $47 billion for the first quarter of the next fiscal year.
