Nvidia earnings after the close. What is expected?

Nvidia will announce its earnings after the close today. Sharea are lower today with the price trading down about -$3.00 or -2.10%. at $144.00. The all-time high closing level is at $148.88.

What are the expectations?

Earnings Expectations

• Adjusted quarterly earnings: $0.74 per share versus $0.40 last year (85% YoY increase)

• Revenue: $33.2 billion versus $18.12 billion last year (84% YoY increase)

• Fiscal Q4 sales guidance: $37.7 billion (KeyBanc estimate, down from $40 billion)

• Fiscal Q4 earnings outlook: $0.83 per share (KeyBanc estimate, down from $0.88 per share)

Analyst Sentiment

• 90% of Wall Street analysts recommend buying the stock

• KeyBanc maintains Overweight rating and $180 price target

Drivers

• Strong demand for AI infrastructure and Blackwell AI chips. Jensen Huang called demand for it’s newest Blackwell chip “insane” back on October 3

• Growing demand in robotics and traditional computing sectors

• Emerging demand from AI software developers

Challenges

• Reported overheating issues with Blackwell servers (unconfirmed by Nvidia)

• Supply chain challenges around production ramp

• Increased pressure among China hyperscalers to use domestic AI solutions.

Last quarter earnings came in at $0.68 versus $0.647 estimate. Revenues were at $30.04 billion versus $28.74 billion. Shares fell -6.38% from $125.61 to a closing level to $117.59 the next day. The price fell -18.14% to its low close on September 6 at $102.83 before starting its rebound to the upside which reached a new record level of $149.77 intraday on November 8.

Shares in 2024 are up about 192%

This article was written by Greg Michalowski at www.forexlive.com.