UBS Group AG: Blackwell's fourth quarter may generate revenue of $9 billion, maintains NVIDIA Corporation's (NVDA.US) target price at $185.

NVIDIA Corporation's stock (NVDA.US) has remained relatively flat since its last quarterly earnings report, but UBS Group AG predicts that the company's revenue from its latest production line will exceed previous expectations due to optimistic sentiment around the Blackwell chip. UBS Group AG analyst Timothy Arcuri has maintained a target price of $185 for NVIDIA Corporation. In a report to clients, Arcuri wrote, "First, we believe that the yield on the Blackwell chip has improved, and the combination of the fourth quarter (January) and the first quarter (April) is rapidly shifting from Hopper to Blackwell." Additionally, based on Foxconn's latest performance, any hardware issues that NVIDIA Corporation may face have recently seen significant improvement as the company is delivering B200 and GB200 processors to partners, with rack deliveries already underway. Arcuri added, "Therefore, we now see revenue from Blackwell in January at around $9 billion (compared to previous expectations of around $5 billion, with supply chain capacity supporting up to $14 billion), but we expect a decline in Hopper in January. We forecast revenue of $42 billion (data center) for the fourth quarter (January) and still $47 billion for the first quarter (April)."