03:18 PM EST, 11/11/2024 (MT Newswires) -- Nvidia's ( NVDA ) is expected to deliver "strong enough" fiscal Q3 results and guidance to bolster the stock price, UBS Securities said Sunday in a report.

Earnings in Q3 at $0.78 a share on revenue of 34.3 billion are expected to top Wall Street estimates at $0.74 a share on revenue of $33 billion, UBS said. Results are scheduled for Nov. 20.

Fiscal Q4 revenue guidance was seen around $37 billion with an upside to $39 billion, UBS said.

UBS forecast Q4 earnings of $0.87 a share on revenue of $38.9 billion, exceeding Street estimates of $0.81 per share on revenue of $36.6 billion.

Nvidia ( NVDA ) is set to benefit from hyperscale capital expenditure and sovereign AI spending, especially in Middle East countries, UBS said.

"The biggest blind spot" may be gross margin, forecast to drop 200 basis points in fiscal Q1 to around 73%, and "anything below this could be viewed negatively by investors," UBS said.

The firm boosted its price target on Nvidia ( NVDA ) stock to $185 from $150 and reiterated its buy rating.

Price: 145.86, Change: -1.77, Percent Change: -1.20