UBS raised its price target for NVIDIA (NASDAQ:NVDA) to $850 from $580 in a note Tuesday, maintaining a Buy rating on the stock, with the bank stating that they keep hearing from customers that the company continues to raise prices.
In the earnings preview note, UBS said customer discussions confirm NVDA's lead times have come in substantially over the past few months, meaning "shipment slots are still available in C2H:24."
"Normally, this is bad, but demand for AI compute capacity is still so strong, in the near term, we think this just points to significant upside potential to shipments/revenue," the firm explained.
"We think NVDA beats on data center by ~$2.5-3B (i.e. FQ4:24 Jan Q UBSe Data Center revenue of $19.5B versus Street $16.8B, and total revenue ~$23B versus Street ~$20.2B)," UBS added. "Given supply chain work, we see enough capacity for NVDA to guide $25-26B on total revenue."
Meanwhile, customers have told the bank that NVDA continues to raise prices – even on H100, despite the pending ramp of H200 and B100.