Jefferies says buy Nvidia shares into earnings due its next graphics chips

Tyrone Siu | Reuters

Nvidia co-founder and CEO Jensen Huang attends an event during the annual Computex computer exhibition in Taipei, Taiwan May 30, 2017.

Nvidia’s sales will surge over the next year due to its next generation graphics products, according to Jefferies.

The firm reiterated its buy rating for Nvidia’s stock, predicting the chipmaker will report profits above expectations this year.

Nvidia is slated to report its second-quarter earnings results on Thursday.

“We think expectations are low given that they’ve guided to a drop in crypto revenue and lower [gross margins]. We would be buyers into the print,” analyst Mark Lipacis said in a note to clients Friday.