NVDA: Nvidia earnings leaves Australian investors divided

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The AI darling has consistently smashed analysts’ expectations, but some fund managers warn the days of massive beats could be over.

Already a subscriber?Former Nvidia backers are selling down their stakes in the stock ahead of next week’s result, saying the days of blockbuster earnings surprises may now be a thing of the past for the artificial intelligence bellwether.

Indeed, as companies invest heavily into enhancing AI capabilities, there has been growing scepticism about whether that has translated into improved growth and efficiency for Nvidia’s biggest customers. Markets will also be watching for any update on the delayed rollout of Nvidia’s Blackwell chip series, which are about twice as fast as its current Hopper model but with improved efficiency.

“That FY25 figure needs to be $US130 to $US140 billion to hold these prices,” said Alex Pollak, investment chief of Sydney-based Loftus Peak.

 

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