This note from UBS (earlier this month) is worth considering:
“Our recent supply-chain checks confirm our prior suspiciouns that demand momentum for Blackwell rack-scale systems remains exceedingly robust.
We now believe EPS of $5 could be doable for calendar 2025, as the order pipeline for NVL72/36 systems is materially larger than just two months ago as hyperscaler budgets for 2025 firm up.
This comes as sentiment on the stock, though still strong, has faded somewhat in recent weeks, ceating more of a “wall of worry” that should be ultimately healthy if our outlook materializes.
We are raising our calendar 2025 revenue/EPS estimates by 12%/ 15% to $204 billion / $4.95—far above sell side’s $161 billion/ $3.62, though we do believe expectations among a subset of investors has risent to a range close to our new numbers.
Given all of this, we believe a $150 price target can be supported (up from $120 previously) and we maintain a Buy rating.”
Long Nvidia.