NVIDIA Corporation (NVDA.US) is soon to release its Q4 financial report. Oberheimer expects it to exceed market expectations and reaffirms its "outperform" rating.

The US chip giant NVIDIA Corporation (NVDA.US) is about to announce its fourth-quarter performance. Investment bank Oppenheimer expects that the company's financial report this time is expected to deliver results that exceed market expectations, with revenue potential between $2 billion and $3 billion. Schafer reiterated the "outperform the market" rating for NVIDIA Corporation and maintained a target price of $265. In a report to clients, analyst Rick Schafer of Oppenheimer pointed out that NVIDIA Corporation's revenue guidance for the fourth quarter (ending in January) and the first quarter of fiscal year 2026 (ending in April) has a "typical" upside potential of $2 billion to $3 billion, mainly driven by strong demand for the GB300 Ultra product line. The current Wall Street revenue expectations for these two quarters are $65.6 billion and $71.6 billion, respectively. Schafer stated that capital expenditures by cloud service providers continue to rise, with global cloud provider capital expenditures expected to reach $650 billion in 2026, significantly higher than the level of over $400 billion in 2025. Furthermore, the scale of Large Language Models (LLMs) is still growing at a rate of about 10 times per year, and the demand for inference-class tokens is also increasing by more than 5 times, further increasing the demand for high-performance AI computing power. On the product level, Schafer pointed out that NVIDIA Corporation's rack-level solution NVL72 remains industry-leading in AI performance per unit power consumption, and the new generation Vera Rubin (VR200) platform is progressing as planned, with mass production ramp-up expected in the third quarter of fiscal year 2026, followed by the higher-end VR300 Ultra expected to be launched in the early third quarter of fiscal year 2027. Schafer further estimated that the average selling price of the Vera Rubin platform is expected to be 40% to 50% higher than the GB300. As a reference, the single set price of GB300 is about $3.5 million. Based on this, the Vera Rubin series of products is expected to bring in approximately $8 billion in additional revenue for NVIDIA Corporation in the future. Additionally, with the re-inclusion of the Chinese market in the addressable market, the potential addressable market size could reach as high as $50 billion, further boosting NVIDIA Corporation's total addressable market (TAM), which is currently estimated to be around $4 trillion. Schafer stated that in the long term, NVIDIA Corporation remains the "most versatile AI platform and the most competitive player."