Nvidia, a leading technology company in the chip industry, is gearing up to release its quarterly earnings report, with analysts predicting a revenue of $33.12 billion and an adjusted earnings per share of $0.75. This represents a significant increase of 82.8% in revenue and 87.5% in profit compared to the previous year.
Investors are eagerly anticipating the report, with expectations set high. The options market is predicting that the report will have a greater impact on the S&P 500 index than key economic indicators such as US job data, inflation figures, and even Federal Reserve interest rate meetings, according to Bank of America.
A key focus for investors will be Nvidia’s flagship product, the Blackwell chip, and whether it can maintain the company’s dominance in the artificial intelligence chip industry. CEO Jensen Huang recently commented on the strong demand for the Blackwell chip, but concerns have arisen about overheating issues during installation in custom server racks, potentially causing delays in the product launch.
Zacks Equity Research highlights Nvidia’s data center segment as a significant contributor to the company’s financial success, with expectations of revenue of $28.48 billion, a 96% increase from the previous year, and an 8% sequential growth.
The stock is currently up 0.6% in pre-market trading, following a 4.9% increase the previous day. However, after the last earnings report, the stock dropped nearly 7% in after-hours trading.
The report is not only crucial for global investors but also for Swedish shareholders. According to Avanza, 74,040 of their customers own Nvidia stock, while Nordnet’s platform has 64,283 shareholders invested in the company as of Wednesday afternoon.
In conclusion, Nvidia’s upcoming earnings report is highly anticipated, with investors closely watching the performance of the Blackwell chip and the data center segment. The outcome of this report could have a significant impact on the stock price and the company’s position in the chip industry.