The upcoming release of Nvidia’s first-quarter earnings for fiscal 2025 is highly anticipated, with a specific focus on the performance of the company’s data center. Nvidia has experienced significant growth in recent years, particularly in the AI sector, making it the world’s third-largest company by market capitalization. Since the second quarter of 2023, the company’s revenue growth has been driven by increased demand for its GPUs, with data center sales playing a crucial role.
The data center segment has become the largest revenue contributor for Nvidia, surpassing the gaming segment due to the demand for computer GPUs driven by the AI boom. Analysts expect Nvidia’s data center revenue to reach $21.2 billion in the April quarter of this year, representing a 495% year-over-year growth. The company’s non-GAAP gross margin has also seen significant improvement, rising to 77% in the final quarter of last year.
Nvidia’s newly launched Blackwell platform has garnered attention for its advanced computing capabilities, allowing for the training of AI models at an unprecedented scale. This technology is expected to be adopted by major companies in the tech industry, further driving Nvidia’s growth. However, the company has faced challenges related to export restrictions on its AI chips to China, which may impact its performance in the first quarter.
CEO Jensen Huang remains optimistic about the future demand for AI chips, predicting strong growth into 2025 and beyond. Analysts expect Nvidia to post impressive earnings and revenue figures for the upcoming quarter, reflecting the company’s continued success in the AI sector. Despite challenges related to export restrictions, Nvidia’s overall growth outlook remains positive.
In summary, Nvidia’s first-quarter earnings for fiscal 2025 are eagerly awaited, with a focus on the performance of its data center segment. The company has experienced significant growth driven by the AI boom and the demand for its GPUs. The Blackwell platform and strong demand for AI chips are expected to support Nvidia’s growth trajectory. However, export restrictions to China may pose challenges for the company in the upcoming quarter. CEO Jensen Huang’s positive outlook for the future reflects Nvidia’s strong position in the AI market.
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https://www.euronews.com/business/2024/05/21/nvidia-shares-could-soar-as-traders-eye-first-quarter-earnings