Nvidia’s Big Earnings Day: What to Watch for

Nvidia is set to reveal its fiscal 2025 third-quarter results after the market closes on Wednesday. Wall Street is eagerly anticipating a significant profit jump to 75 cents per share, with revenue projected to hit $33. 16 billion—both figures marking over 80% growth compared to last year. Given Nvidia's massive market cap of over $3. 6 trillion, this report could influence the broader market. One key area of interest is the demand for Nvidia's new Blackwell GPU, designed for heavy artificial intelligence tasks. Analysts are keeping a close eye on how well Nvidia can meet this demand, as it's expected to generate billions in revenue starting in January. Some analysts predict Blackwell sales could reach up to $8 billion in the first quarter alone.

Analysts at Goldman Sachs and Citi are optimistic about Nvidia's transition to Blackwell chips, expecting a more significant impact in April. They maintain buy ratings on the stock, with price targets ranging from $150 to $170. Despite recent reports of overheating issues with Nvidia's server racks, many analysts remain confident in Nvidia's momentum. In addition to Blackwell, Nvidia's Hopper GPU has been performing well, with strong sales expected to drive data center revenue growth. Some analysts predict earnings per share to exceed expectations, reaching up to 79 cents. The company's work with Elon Musk's AI startup, xAI, on a supercomputer using 100, 000 Hopper GPUs, is another promising area for growth. Overall, analysts expect a strong quarter for Nvidia, driven by robust demand for its AI-focused products.

Actions