Nvidia, the technology giant known for its advanced graphics processing units (GPUs), is set to release its third-quarter earnings report today after the market closes. The anticipation is high among investors, as the company’s stock closed at a record high of $504.09 per share on Monday.
One of the key factors driving excitement around Nvidia is the resurgence of artificial intelligence (AI) as a major investment focus. With AI once again becoming the story of the moment, Nvidia has emerged as the face of the 2023 AI revolution. As a result, expectations remain sky-high for the chip giant.
According to Wall Street analysts, Nvidia is expected to report revenue of $16.1 billion for the third quarter, with an adjusted earnings per share (EPS) of $3.36. Notably, the company’s data center revenue is expected to reach $12.82 billion, while its gaming revenue is estimated at $2.7 billion.
Investors will also closely scrutinize Nvidia’s revenue outlook for the fourth quarter, with analysts predicting a guidance of $17.8 billion. This comes after the company surprised investors earlier this year with its strong second-quarter results and optimistic guidance.
Bank of America research analyst Vivek Arya is confident that Nvidia will beat consensus expectations. However, it is worth noting that the stock stumbled after its August report when investors raised concerns about the company’s valuation and potential chip restrictions in China. Nvidia, however, stated that it does not expect any immediate impact from these restrictions.
In addition to financial performance, analysts will also be interested in Nvidia’s comments on global demand for its products, particularly in cloud services. Stifel analyst Ruben Roy believes that the company’s insights into this aspect will be particularly crucial.
Nvidia’s stock has been a major driver of momentum in the stock market this year and is considered one of the “Magnificent Seven” stocks. However, Evercore ISI senior managing director Julian Emanuel advises investors to prepare for potential “post-NVDA volatility.”
As Nvidia prepares to unveil its third-quarter earnings, all eyes are on the company to see if it can continue its remarkable growth trajectory and maintain its position as a market leader in the AI revolution.
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