02:21 PM EST, 11/10/2025 (MT Newswires) -- Nvidia ( NVDA ) looks set to exceed its fiscal third-quarter revenue outlook by about $2 billion, in line with recent trends, and guide fourth-quarter sales above Wall Street's estimates, UBS Securities said in a client note emailed Monday.

The chip-making giant is scheduled to release its latest results on Nov. 19 after market close.

Third-quarter revenue is expected to be about $56 billion, compared with Nvidia's ( NVDA ) $54 billion guidance. The company has topped its revenue forecast by $2 billion in the past few quarters before US restrictions on chip sales to China were introduced, according to UBS analysts, including Timothy Arcuri.

The FactSet-polled consensus is for third-quarter revenue to jump to $54.62 billion from $35.08 billion a year ago.

Arcuri expects about $66 billion in fourth-quarter sales. Wall Street is looking for $61.46 billion. UBS sees several tailwinds to fourth-quarter revenue, allowing it to guide higher than expected.

UBS is projecting adjusted per-share earnings of $1.29 for the third quarter and $1.55 for the fourth, both above market estimates.

"We have sensed some recent hand-wringing among investors around the impact of higher memory and other component costs on gross margin, but we are comfortable with 73.5% for (the third quarter) and 74.5-75% for (the fourth quarter)," Arcuri said. "We also see (Nvidia ( NVDA )) indicating it can maintain mid 70% (gross margin in calendar year 2026) as well."

Nvidia ( NVDA ) expects $500 billion in cumulative 2025 and 2026 revenue from Blackwell and Rubin chips, Chief Executive Jensen Huang said at the company's GTC conference late last month.

"We are sympathetic to the view among many investors that the 'surprise' factor for (2026 calendar year earnings per share) is now gone (or at least muted) given the backlog disclosure at GTC ... (which we think suggests EPS close to $9 for C2026), but if it is able to find more (chip on wafer on substrate), there could still be upside to this number," Arcuri said.

UBS reiterated its buy recommendation and a price target of $235 on the stock.

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