Nvidia's earnings Wednesday will be a big test for AI bulls

  • 📰 CNBC
  • ⏱ Reading Time:
  • 66 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 30%
  • Publisher: 72%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Nvidia reports second-quarter earnings on Wednesday against a backdrop of elevated expectations driven by a surge of interest in artificial intelligence.

A closer look at estimates shows just how reliant Nvidia has become on AI chips. Gaming, the company's historically core business, isn't thriving in nearly the same way.

Nvidia is expected to post $2.38 billion in gaming revenue during the quarter, which would be a 16% increase from a year earlier. But that's an easy comparison to 2022 numbers, which reflected a deep slump in graphics cards because so many people refreshed their gaming technology during the pandemic. It also includes sales from the chip at the heart of Nintendo's Switch.

By contrast, Nvidia's Datacenter group, which houses AI chips, is looking at a 111% increase in revenue to $8.03 billion, according to estimates. Nvidia's AI chips, including the A100 and H100, have been difficult to purchase in recent months as startups, big companies, governments and cloud providers all place their orders at the same time.

Nvidia faces some challenges that management might address on the call. Supply is an issue, given that manufactures the chips Nvidia designs. Huang had dinner with TSMC chairman Morris Chang during the quarter. China is another big topic. Last year, the U.S. placed export restrictions on Nvidia, which forced the company to make specialized, slower versions of its AI chips for the Chinese market. Additional export restrictions currently being considered by the Biden administration could further limit the products Nvidia sells to Chinese companies.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

This chip stock could yield a quick profit, depending on Nvidia's earnings, Morgan Stanley saysHow well Nvidia performs Wednesday could have implications for this derivative play, according to Morgan Stanley.
Source: CNBC - 🏆 12. / 72 Read more »

Nvidia earnings: What Wall Street expects from the AI-chip giantNvidia reports its fiscal second-quarter earnings after the close of markets on Wednesday.
Source: MarketWatch - 🏆 3. / 97 Read more »