Nvidia is set to release its first-quarter earnings report after the market closes on Wednesday, with Wall Street anticipating an increase in sales of the company’s AI chips leading up to the launch of its next-generation Blackwell chip. Analysts are closely watching for updates on current chip sales, guidance for the future, and supply and demand dynamics for AI-enabled chips.
The estimates for Nvidia’s first-quarter earnings report are as follows:
– Revenue: $24.69 billion
– Earnings per share: $5.34
– EBITDA: $16.74 billion
With the upcoming launch of Nvidia’s Blackwell AI chip, analysts are assessing the potential impact on sales of the current H100 chips. Wall Street expectations for Nvidia’s earnings report vary among prominent financial institutions:
– Wells Fargo raised its price target for Nvidia to $1,150, citing positive data points supporting data center revenue growth.
– Bank of America sees Nvidia as a top pick but notes potential stock volatility due to factors such as the launch of the Blackwell chip and normalized gross margins.
– Deutsche Bank foresees healthy demand for AI computing benefiting Nvidia’s financial performance, but believes the stock is already fully valued.
– Bloomberg Intelligence expects Nvidia to report a solid increase in earnings, highlighting the company’s strong momentum in the AI market.
In summary, Nvidia’s first-quarter earnings report is highly anticipated by investors and analysts, with a focus on sales performance, future guidance, and the impact of the upcoming Blackwell chip launch on the company’s financial outlook. Various financial institutions have differing views on Nvidia’s prospects, with some emphasizing positive data points supporting revenue growth while others cautioning about potential stock volatility and valuation concerns. Investors will be closely watching Nvidia’s earnings report for insights into the company’s position in the AI market and its growth potential moving forward.
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https://markets.businessinsider.com/news/stocks/nvidia-q1-earnings-preview-wall-street-expects-continued-ai-momentum-2024-5