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Nvidia is about to report its fourth-quarter earnings after the market close on Wednesday.
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The highly anticipated report will clarify the booming AI business throughout the tech space.
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Here’s what Wall Street expects from Nvidia’s upcoming earnings report.
All eyes are on Nvidia since it is scheduled to report its fourth-quarter earnings results on Wednesday after the market close.
Nvidia has spearheaded the fun seen in artificial intelligence technologies, and investors will look to the company’s results to see if the hype can proceed.
Wall Street analysts are laser focused on the company’s demand outlook for its AI-enabled H100 GPU chips, which could sell for upwards of $40,000, along with its planned product roadmap over the next 12 months.
Listed below are the quarterly figures Wall Street expects from Nvidia, in response to data from Bloomberg:
While Nvidia has seen incredible demand for its chips from cloud hyperscalers like Microsoft and Amazon, regulatory hurdles have curtailed its ability to sell chips to China, which made up about 20% of its total revenue last 12 months.
Driving much of the strength in Nvidia’s business has been its exposure to data-centers. Investors will probably be attempting to see just how much demand may be left for the data-center market, and whether Nvidia has lost any market share to its competitors like AMD.
Here’s what Wall Street analysts are saying about Nvidia’s upcoming earnings report.
1. Wedbush: ‘Get the popcorn ready’
Wedbush analyst Dan Ives said in a note on Monday that Nvidia’s quarterly results and outlook will hinge on enterprise spending.
“The AI revolution starts with Nvidia and in our view the AI party is just getting began,” Ives said.
“While the Street across the board is anticipating one other major ‘beat and lift’ special from Jensen & Co. its all with regard to the pace of data center AI driven spending since the only game in town for GPUs to run generative AI applications all undergo Nvidia. We imagine peak spending stays to be ahead for the AI market as many enterprises head down the AI use case path over the next few years and we expect more good news from the Godfather of AI this week,” Ives said.
“We’re laser focused on what the trajectory of GPU orders and demand flow looks like from enterprises,” Ives said.
2. Bank of America: ‘Notable but measured beat’
Bank of America expects Nvidia to modestly beat analyst expectations on Wednesday, but not by the margins it has before now.
The bank said Nvidia could beat earnings by 3% and lift its outlook by 5%, which could be significantly lower than the company’s prior earnings beat of 10% and guidance boost of twenty-two%.
“The more measured pace will even be seen as creating more fertile ground for continued growth in CY25 and beyond,” Bank of America said.
The bank expects investors’ think about Nvidia after earnings will probably be its product roadmap, which may be showcased at its GPU Tech Conference in mid-March.
Bank of America rates Nvidia at “Buy” and calls it a “Top Pick” with a $800 price goal.
Bloomberg Intelligence: ‘Nvidia to maintain up stronghold in data-center market’
Bloomberg Intelligence associate Oscar Tejada said in a Friday note that Nvidia will likely impress investors on Wednesday.
“With supply visibility for Nvidia’s GPUs improving, yet still behind demand, and appetite for generative AI not slowing, Nvidia will likely report one other solid 4Q, with a positive outlook toward 2025,” Tejada said.
But one other double-digit beat and lift from Nvidia is unlikely amid rising supply of Nvidia’s GPUs and shortened lead times for its customers.
“Nvidia’s think about securing more supply and diversifying into Enterprise and Sovereign projects should reaffirm continued demand through 2025. Also, hyperscale cloud service providers like Meta and Microsoft proceed to take a position in AI-powered data centers, despite proprietary chip projects,” Tejada said.
Read the unique article on Business Insider