Investing.com -- Nvidia’s upcoming earnings report may be “good enough” to support the stock, according to Loop Capital, even if guidance for the July quarter comes in softer than anticipated.
The broker reiterated its Buy rating and $175 price target ahead of the chipmaker’s April quarter results due May 28.
“Our work suggests NVDA’s Apr Q print and July Q guide can be ‘good enough’ vs. Street to support the stock into what we believe is a 2HCY2025 materially stronger than Street,” said Ananda Baruah, Managing Director at Loop Capital.
Demand for Nvidia’s GPUs appears to have remained solid through the April quarter despite macro and geopolitical headwinds, including tariffs and tensions with China.
Baruah highlighted an ongoing shift to Blackwell architecture as a meaningful driver for average selling prices (ASPs). The analyst now estimates a blended GPU ASP of $33,000 for fiscal 2026, up from $26,000 six months ago. That ASP boost is underpinned by expectations that nearly all of next year’s shipments will be based on Blackwell chips, replacing older Hopper models.
“Our work suggests that B300 (for both GB300 and HGX 300) will be shipping June / by July,” Baruah noted.
If Nvidia’s (NASDAQ:NVDA) July guidance falls short of bullish expectations, Loop sees room for investors to “look through it,” given that next-generation system launches are altering purchasing timelines for large cloud customers.
In particular, the arrival of Blackwell-based configurations is extending decision cycles, with some clients considering sticking with current-generation HGX systems rather than waiting for GB models later this year.
Loop’s estimates remain well ahead of consensus. The firm projects full-year revenue of $229.7 billion and earnings of $5.00 per share for fiscal 2026, versus the Street’s $200.4 billion and $4.40 per share.
Notably, those figures do not include potential upside from new GPU orders linked to a data center project by xAI, Elon Musk’s AI startup, or recent reported deals in the Middle East.
Overall, Loop views the fundamental setup for Nvidia as intact, with strong demand trends and pricing power expected to carry through the second half of 2025.