UBS Group AG beats NVIDIA Corporation (NVDA.US) earnings report: Target price raised to $245, Blackwell contributes $9 billion in revenue as the main highlight.

As NVIDIA Corporation (NVDA.US) is about to release its financial report for the fourth quarter of fiscal year 2026, UBS Group AG stated in its latest research report that the current performance background of this chip giant remains "favorable". UBS Group AG analysts pointed out that although there have been concerns in the market recently about the sustainability of AI hardware demand and margin compression, leading to NVIDIA Corporation's stock price performing relatively stable, this sentiment has actually lowered the threshold of expectations for the upcoming financial performance release, laying the groundwork for better-than-expected financial performance and stock price rebound. The analyst Timothy Arcuri reiterated a "buy" rating and raised the target price from $235 to $245. Arcuri wrote in a client report: "Given the lukewarm stock performance, the continued optimistic signals from the supply chain, and management's apparent frustration with the widespread doubts surrounding growth and margin sustainability, the background of this earnings report appears positive - especially as we approach the GTC conference next month." UBS Group AG's optimistic confidence in NVIDIA Corporation's performance mainly comes from strong signals from the supply chain and the release of capacity for key products. According to the bank's analysis of Asian supply chains, especially export data from Taiwan, China in January, the export volume of equipment related to Automatic Data Processing, Inc. achieved counter-seasonal growth during the traditional offseason, directly reflecting the strong demand for AI infrastructure in global data centers. At the same time, the capacity of NVIDIA Corporation's new generation Blackwell architecture chips is in an accelerated expansion phase, and UBS Group AG expects this product series to contribute approximately $9 billion in revenue in the fourth quarter, becoming the core growth driver that exceeds expectations. In terms of financial expectations, UBS Group AG has shown a positive attitude above the market consensus. The bank predicts that NVIDIA Corporation's revenue for the fourth quarter will reach about $67.5 billion, significantly higher than the company's previous guidance range of $65 billion. Regarding gross profit margin, Arcuri stated that there are no short-term factors that will impact the company's 75% gross profit margin guidance. Despite investor skepticism due to the "perceived threats" from Alphabet Inc. Class C (GOOGL.US) and Broadcom Inc. (AVGO.US). Looking ahead, UBS Group AG predicts that NVIDIA Corporation will provide quarterly revenue guidance as high as $76 billion, well above the market's general expectation range of $74 billion to $75 billion. Overall, the bank believes that NVIDIA Corporation's financial report to be announced after the close on February 25, 2026 will be an important catalyst in the short term, and the GTC conference in March following it is expected to further consolidate its long-term leadership position in the field of AI, driving the company's market value to new heights.