Good morning. QQQs dn 55bps on a fairly slow news/research morning as market awaits for big prints from AMZN/AMD after the close…BTC -3%, yields ticking up, and China dn 1%. Let’s get to it…
NVDA: UBS Riases CY25 EPS to $41
Pretty bullish note by UBS this morning, talking up Blackwell supply chain checks in CY25. Key points:
Oct Q still might see a patch of slower growth but Hopper demand remains much stronger than UBS would expect in front of a big product transition
Blackwell mix composition shaping up richer than Hopper, with demand for GB200 server racks very strong driven by increasing bottlenecks over power infrastructure components and demand from hyperscalers. UBS thinks GB200 will be 37% of NVDA’s GPU mix in CY25 with a 50%+ exit rate and notes this will help revenue stacking; in other words more demand for systems vs. boards.
CY24 EPS goes to $28 from $26 and CY25 to $41 from $30
UBS thinks BW shipments coming in a little later, which suggest late Nov/Dec as likely so they model…
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