11:53 AM EDT, 08/12/2024 (MT Newswires) -- Nvidia ( NVDA ) may see upside to its fiscal Q2 results, which would be consistent with the company's past few quarters, supported by demand for its data center chips, UBS said in a report emailed Monday.

The company is expected to post Q2 EPS of $0.68 on revenue of $29.9 billion, above consensus estimates for EPS of $0.64 on revenue of $28.6 billion, UBS said, adding the company's data center revenue is seen at $26.3 billion, up 17% quarter on quarter and above the Street's forecast of $25 billion.

The investment firm said the indicators it usually relies on "generally skewed bullish" like Super Micro Computer (SMCI) posting very solid results due to strong demand for Hopper chips.

Also, Taiwan Semiconductor Manufacturing (TSM) delivered "very strong" quarter on quarter growth in high-performance computing, and King Yuan Electronics "posted very strong results in its data processing segment," UBS said.

Meanwhile, when it comes to Nvidia's ( NVDA ) guidance, demand for Hopper and H200 chips is likely "strong enough for [Nvidia ( NVDA )] to continue the recent pattern and guide to [$31 billion to $32 billion] with an implied data center number close to [$28 billion]," the note said.

UBS kept its buy rating and $150 price target on Nvidia ( NVDA ).

Nvidia ( NVDA ) will release its fiscal Q2 results on Aug. 28.

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