Nvidia (NVDA) is expected to deliver another strong quarter as demand for AI compute remains strong and the initial Rubin platform ramp begins, RBC Capital Markets said.

RBC models fiscal Q2 revenue of $91.1 billion and adjusted EPS of $2.06, compared with consensus estimates of $92 billion and $2.09, respectively. The firm expects fiscal Q3 revenue guidance to come in about 5% above the $103.8 billion consensus.

The initial Rubin platform ramp is expected to carry a more than 50% average selling price premium, along with an estimated $10 billion of incremental standalone CPU opportunity in the second half of the year, according to the report Wednesday.

RBC also pointed to Nvidia's access to component supply, citing $119 billion of purchase commitments in the last quarter. The firm expects gross margin of 75% in fiscal Q2 and Q3 and expects management to reiterate mid-70% gross-margin guidance for fiscal 2027.

The investment firm said it projects more than $400 billion in free cash flow over the next two years even after dividends, which it said could provide room for additional share repurchases.

RBC reiterated its outperform rating on Nvidia, with a $300 price target.

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