Here's What To Expect From Nvidia's ‘Massive' Earnings Report

Core Viewpoint - Nvidia is set to release its first financial results of the year, which will provide insights into its performance following a significant market value loss due to competition from a new AI model from China [1][2]. Financial Performance - Nvidia will report earnings for its fourth fiscal quarter, with consensus estimates predicting $38.1 billion in revenue and $0.85 adjusted earnings per share, which would surpass previous records [2]. - Year-over-year revenue growth is expected to be 72%, while profit growth is projected at 64%, marking the weakest growth for Nvidia since April 2023 [3]. - The datacenter unit is forecasted to generate $33.5 billion in sales, reflecting 82% year-over-year growth, also the slowest in seven quarters [3]. Market Context - Nvidia's stock experienced fluctuations, rising nearly 3% in premarket trading but remaining about 12% lower than its position before the last earnings report [5]. - The stock has declined nearly 10% over the past month amid concerns regarding the impact of less tech-intensive AI models on Nvidia's sales [5]. Analyst Sentiment - Despite recent stock performance, analysts maintain an optimistic outlook, with an average price target of $175 indicating a potential 38% upside [6]. - Bank of America analysts predict that the upcoming earnings call could signal a turning point in investor sentiment [6]. Industry Position - Nvidia is recognized as a leader in the AI revolution, expected to capture approximately 95% of the global GPU market by 2025 [8]. - The company has been the best-performing stock on the S&P for 2023 and 2024, although it has underperformed the broader market recently [8].