Chip delays, AI demand in focus in Wednesday's market-moving Nvidia earnings

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Earnings from bellwether Nvidia could play a pivotal role in the ongoing AI narrative, and decipher where a volatile market goes from here.

"The bottom line now is it's all about NVDA," said Strategas' Ryan Grabinski in a recent note to clients. "The direction of the market in the near term appears to be fully on the shoulders of this company." Wall Street has come to view Nvidia as the barometer for the broader semiconductor and AI industries. The company has prevailed as the dominant — and most advanced — artificial intelligence chipmaker — supplying to the likes of Amazon, Alphabet and Microsoft.

mountain Shares this year Investors widely expect the chip behemoth to top estimates when it posts results after the bell Wednesday. estimates are currently bracing for earnings and revenue of 64 cents per share and $28.7 billion, respectively. All eyes remain on the company's forecast, which has typically impacted the after-market stock action. But the company's Blackwell chips also remain in focus following a report from The Information earlier this month about delays with its next-generation AI chips.

estimate revenue will come in at $31.7 billion during the fiscal third quarter, representing 75% year-over-year growth. That would signal a deceleration from the 112.5% year-over-year growth expected this quarter. mountain Shares over the last month UBS analyst Timothy Arcuri suggests that estimates for this so-called whisper number have edged up to between $33 billion and $34 billion. That's up from a previous forecast of $31.7 billion and a consensus estimate of $31.6 billion, he noted. Blackwell concerns Nvidia shares fell last month following reports that the company is experiencing delayed production for its latest graphics processing unit ecosystem dubbed Blackwell.

 

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