$NVIDIA (NVDA.US)$ UBS's Arcuri said investors see a "wall o...

$NVIDIA (NVDA.US)$ UBS's Arcuri said investors see a "wall of worry" of sorts for Nvidia (NVDA), but that's one that the company should be able to climb, provided his outlook pans out. Arcuri is upbeat about Nvidia's new Blackwell chip lineup, which will start shipping later this year.

His recent supply-chain work indicates "that demand momentum for Blackwell rack-scale systems remains exceedingly robust," he wrote in a Monday note to clients. Customers seem to like the power efficiency of the rack-scale offerings.

The trend "will translate into a richer revenue mix than with Hopper," Nvidia's older chip lineup, Arcuri said.

"Even though our estimates have consistently been well ahead of Street, we are even now still baking in a gap to what is being suggested by the supply chain," he added.

Arcuri expects Nvidia to see $204 billion in revenue next calendar year, along with $4.95 a share in adjusted earnings. His prior estimates called for $178 billion and $4.22, respectively. The FactSet consensus calls for $159 billion in revenue along with $3.57 in adjusted earnings per share.

Arcuri noted that hyperscalers are expected to increase their capital expenditures at rates similar to his projections for Nvidia's revenue growth.

He also boosted his price target on Nvidia shares to $150 from $120, while keeping his buy rating on the stock.