Nvidia CEO Jensen Huang attends a media roundtable assembly in Singapore on Dec. 6, 2023.
Edgar Su | Reuters
Nvidia is scheduled to announce fiscal fourth-quarter earnings after the bell Wednesday in a extremely anticipated report that can give Wall Road a way of how lengthy the AI increase can final.
Here is what Wall Road is anticipating in keeping with consensus estimates from LSEG, previously often known as Refinitiv:
- Earnings per share: $4.64 adjusted
- Income: $20.62 billion
Nvidia has been the first beneficiary of the latest know-how business obsession with massive synthetic intelligence fashions, that are developed on the corporate’s expensive graphics processors for servers.
Nvidia’s inventory worth has soared practically fivefold for the reason that finish of 2022, giving the corporate a market worth of $1.72 trillion, briefly surpassing tech giants Amazon and Alphabet.
Nvidia has to fulfill elevated expectations stoked by investor urge for food for AI firms.
Analysts count on Nvidia to publish a 240% improve in income from the year-ago interval, for a complete of $20.6 billion, pushed by $17.06 billion in knowledge heart income — the enterprise that sells AI GPUs just like the H100. Web earnings is forecast to surge greater than sevenfold to $10.5 billion within the January quarter.
Traders need to hear from Nvidia CEO Jensen Huang about how lengthy these stratospheric progress charges can final. One concern is that a lot of Nvidia’s GPUs are offered to huge tech firms reminiscent of Microsoft, Amazon, Meta and Google.
These firms reported earnings in latest weeks and signaled they may proceed to spend money on new GPUs within the quick time period, however some analysts suppose the long-term image for demand may very well be extra blended.
“They referred to their buying as ‘versatile’ and ‘demand pushed,’ implying they might scale it down if we bought previous the present hype cycle,” D.A. Davidson analyst Gil Luria wrote in a latest observe to buyers. “Whereas we don’t imagine we’re there but, we’re seeing doable early indicators.”
Nvidia can be planning to begin delivery a brand new highest-end server GPU known as the B100 in 2024. The timing of that chip might have an effect on the corporate’s progress price.
Within the present quarter, Wall Road analysts count on a 208% price of progress to about $22.17 billion in gross sales.
Nvidia has different companies, from chips for PC gaming to automotive chips. However the focus Wednesday will stay totally on its AI GPUs, which make up greater than 80% of Nvidia gross sales.
“The [data center] GPU quantity would be the solely key metric that issues together with commentary on broader market adoption,” wrote Barclays analyst Thomas O’Malley in a observe earlier this month.
