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Nvidia earnings preview: Wall Street eyes update on Blackwell rollout

Nov 19, 2024 - markets.businessinsider.com
Nvidia is set to report its third-quarter earnings after the market close on Wednesday, with Wall Street focusing on customer demand for Nvidia's Blackwell GPU chip. Analysts are bullish, expecting strong demand for Nvidia's GPUs and significant revenue growth. The company is expected to deliver third-quarter revenue of about $33 billion, representing 83% year-over-year growth. However, CFRA Research analyst Angelo Zino advises investors to temper expectations for the Blackwell launch, predicting that the chips will be sold out for much of 2025 due to high demand.

Goldman Sachs analysts expect Nvidia to deliver $34.3 billion in revenue for the third quarter, with adjusted earnings per share at $0.79, which is above consensus estimates. They predict strong demand for Nvidia's Hopper-based GPUs and Spectrum-X to drive strong double-digit data center revenue growth. Wedbush analyst Dan Ives expects Nvidia to beat revenue estimates by $2 billion and deliver revenue guidance that beats estimates by $2 billion. Bloomberg Intelligence analyst Kunjan Sobhani expects Nvidia's gross margin to decline, yet remain above 73%.

Key takeaways:

  • Nvidia is set to report third-quarter earnings and Wall Street is focused on the demand for Nvidia's Blackwell GPU chip, with expectations of strong demand and significant revenue growth.
  • CFRA Research advises investors to temper expectations for the Blackwell launch, expecting it to be supply constrained through 2025 due to high demand from hyperscalers for next-generation data centers.
  • Goldman Sachs expects strong demand for Nvidia's Hopper-based GPUs and Spectrum-X to drive strong double-digit Data Center revenue growth, and rates Nvidia at 'Buy' with a $150 price target.
  • Wedbush expects Nvidia to beat revenue estimates by $2 billion and deliver revenue guidance that beats estimates by $2 billion, with robust Blackwell production and demand.
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