Nvidia Earnings Date: Record-Breaking Revenue Expected
Analysts expect $38.1 billion in revenue and $0.85 adjusted earnings per share, representing 72% revenue growth and 64% profit growth, driven by the company's datacenter unit, which powers most generative AI models and is forecasted to have $33.5 billion in sales.
Nvidia is set to report its Q4 earnings on Wednesday, with analysts expecting a significant increase in revenue and profit, driven by its data center business and growth in the AI space, despite challenges from competitors and regulatory issues.
The company's data center business is expected to generate the majority of its revenue, with gaming expected to bring in $3 billion. Nvidia's shares are down over 5% year-to-date, amid concerns about threats from competitors such as Amazon, Google, and Meta, which are developing their own custom AI chips. However, Morgan Stanley Research analyst Joseph Moore believes that Nvidia is still gaining share in the AI space.
Nvidia CEO Jensen Huang has argued that powerful models like DeepSeek's will incentivize companies to spend on top-of-the-line processors, rather than discouraging them. The company's expansion remains impressive, outpacing other tech companies, despite slowing growth. Analysts remain optimistic, with a $175 average price target indicating 38% upside from Nvidia's current share price.
The earnings report will provide insight into how the company will recover from the impact of China's less tech-intensive AI model. With expected record-breaking revenue and profit, Nvidia's future prospects look promising, and investors will be closely watching the company's performance on Wednesday.
