Nvidia, the renowned semiconductor company, is scheduled to release its third-quarter earnings after the closing bell on Tuesday. Market analysts are eagerly awaiting this update to gain insights into the current state of the artificial intelligence (AI) hype cycle. The company’s stock reached a record high of $504.09 per share on Monday, reflecting the growing interest among investors in the AI industry.
Nvidia has emerged as the face of the AI revolution, and expectations surrounding its performance are quite high. Analysts predict the company will report revenue of $16.1 billion and adjusted earnings per share (EPS) of $3.36 for the third quarter, with data center revenue at $12.82 billion and gaming revenue at $2.7 billion. These figures will be compared to the company’s performance in the same quarter last year.
Aside from the financial results, investors will also be closely watching Nvidia’s revenue outlook for the fourth quarter. Wall Street analysts are expecting the company to provide guidance of around $17.8 billion.
In the previous quarter, Nvidia surpassed Wall Street’s expectations and provided optimistic guidance, causing the stock to stumble temporarily as investors questioned the company’s valuation. Additionally, concerns about chip restrictions in China added to the uncertainty. However, Nvidia reassured investors in an SEC filing, stating that it does not foresee any near-term impact from these new restrictions.
Analysts believe that Nvidia’s success will continue to be driven by the strong global demand for its products. Vivek Arya, a research analyst at Bank of America, expects Nvidia to outperform consensus estimates in its upcoming report.
Despite the stock’s performance, Julian Emanuel, senior managing director at Evercore ISI, warned investors about potential volatility in the market, specifically referring to “post-NVDA volatility.” This serves as a reminder that regardless of Nvidia’s performance, unforeseen external factors can still impact the stock.
Nvidia’s earnings report will undoubtedly shape the narrative surrounding the company’s role in the AI industry. As market watchers, we eagerly anticipate the release of these results, which will provide crucial insights into the current state and future prospects of this influential player in the tech industry.
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