Nvidia may top Q1 estimates, but its outlook could be hindered by China: Oppenheimer

Nvidia (NASDAQ:NVDA) is set to report its fiscal first-quarter results after the close of trading on May 28 and investment firm Oppenheimer is expressing some caution going into the print.

Analyst Rich Schafer said the company is likely to top estimates for the first-quarter, but its guidance will likely be “roughly in-line,” despite the loss of the H20 chip in China.

“Production of flagship GB200 rack-scale systems appears to have moved past their initial ‘growing pains,’” Schafer wrote in a note to clients. “We believe Blackwell 200/300 NVL72 equivalent volumes still on track to meet/exceed 40K this year. We see GB300 (Ultra) on track for seamless 3Q debut. Top 5 hyperscale customers make up ~50% of sales, though mgmt continues to diversify topline.”

Schafer, who reiterated his Outperform rating and $175 price target on the stock, said Nvidia is still the best positioned company to capture artificial intelligence upside, as it benefits from having a full-stack with both hardware and software and a “unique rack-level approach.”

A consensus of analysts expect Nvidia to earn $0.73 per share on $43.18B for the coming quarter.