Analysts from Wedbush, Bank of America, and Bloomberg Intelligence have shared their expectations. Wedbush's Dan Ives believes Nvidia's results will hinge on enterprise spending and anticipates more good news from the "Godfather of AI". Bank of America expects a modest beat on analyst expectations but not by the margins seen in the past. Bloomberg Intelligence's Oscar Tejada predicts another solid quarter for Nvidia, but doesn't expect another double-digit beat and raise due to rising supply of Nvidia's GPUs and shortened lead times for its customers.
Key takeaways:
- Nvidia is set to report its fourth-quarter earnings after the market close on Wednesday, with Wall Street expecting a revenue of $20.41 billion, GAAP earnings per share of $4.23, adjusted earnings per share of $4.60, and a gross margin of 75.4%.
- Analysts are particularly interested in the company's demand outlook for its AI-enabled H100 GPU chips and its planned product roadmap over the next year.
- Despite regulatory hurdles affecting its ability to sell chips to China, Nvidia has seen strong demand for its chips from cloud hyperscalers like Microsoft and Amazon, and much of its business strength has been due to its exposure to data-centers.
- Analysts from Wedbush, Bank of America, and Bloomberg Intelligence have shared their expectations for Nvidia's earnings report, with Wedbush anticipating a strong AI-driven spending pace, Bank of America expecting a modest beat of analyst expectations, and Bloomberg Intelligence predicting a solid fourth quarter with a positive outlook towards 2025.