Wedbush maintains its bullish outlook on Nvidia (NVDA.US): DeepSeek fails to dampen AI demand, Q4 performance may exceed expectations once again.

Wedbush Securities remains bullish on Nvidia (NVDA.US) and expects the semiconductor giant led by Jensen Huang to deliver a "significant beat and growth" in its fourth-quarter earnings, according to a recent research note. The analyst wrote in the report: "In 2025, the 'Big 7' will spend $325bn on capital expenditure, up ~$100bn YoY. As more enterprises and governments (like Gateway) embark on the golden road of AI, enterprise-driven demand is accelerating. We believe demand is far outpacing supply after the launch of Blackwell products. After speaking with numerous enterprise AI customers, we found no one's AI deployment has slowed down or changed due to DeepSeek." The analyst added that AI is now expected to account for about 10% of all IT budgets in 2025, up to 15% in some cases, as CIOs have "accelerated" their AI strategies over the next six to nine months. Nvidia is expected to benefit as it is believed that every dollar spent on Nvidia's AI accelerators will generate a 8-10x multiplier effect in AI. Analysts currently expect Nvidia to achieve EPS of $0.85 and revenue of $38.5bn in Q4.