Nvidia (Nvidia) plans to release its third-quarter earnings report after the close of trading on Tuesday.Wall StreetEagerly await updates on the fundamentals behind the AI boom.
Nvidia shares closed at an all-time high of $504.09 per share on Monday. Sam Altman leaves ChatGPT maker OpenAI And switched to Microsoft, artificial intelligence has once again become the focus of investors' attention.
As Nvidia has become the face of the AI story in 2023, expectations for the chip giant remain high.
Here’s how Wall Street expects Nvidia’s third-quarter results to compare with the same period last year, according to data compiled by Bloomberg:
- Revenue: $16.0 billion expected, compared to $5.93 billion in the same period last year
- Adjusted EPS: expected to be $3.36, compared to $0.58 in the same period last year
- Data center revenue: estimated at $12.82 billion, compared to $3.83 billion in the same period last year
- Gaming revenue: estimated at $2.7 billion, compared to $1.57 billion in the same period last year
Investors will also be watching the company's revenue outlook, with Wall Street expecting fourth-quarter guidance of $17.8 billion. For 2023, the company gave investors amaximumsurprise.
In August, Nvidia reported second-quarter results that beat Wall Street expectations for revenue and earnings per share and provided guidance that beat the high end of estimates, sending its shares to an all-time high. In May, one analyst called the company’s forecast “epic guidance.”
But in the months following the August report, shares swung as investors began to question Nvidia's valuation and updates on chip export restrictions challenged the market's ultimate size assumptions.
In an SEC filing after announcing the new restrictions, the company said it does not expect an impact in the short term. Stifel analyst Ruben Roy told Yahoo Finance Live that he expects Nvidia to make similar comments on Tuesday.
“We think thatThere is still a lot of demand around the world. So, of course, in the U.S., the big cloud service providers... We think that will continue to be a huge opportunity for Nvidia. Even outside of the U.S., in Europe, Japan, Korea, etc., there is a lot of activity around AI... Nvidia is still the right player to capture that growth, in our view.optimalWay.
A driver of this year's stock market momentum, Nvidia is one of the key members of the "Magnificent Seven" stocks, along with Apple, Google, Microsoft, Amazon, Meta and Tesla.
As of mid-November, these stocks have gained a total of more than 70% this year, while the remaining 493 stocks in the S&P 500 have risen by only 6%.
Evercore ISI advancedManaging Director Julian Emanuel said on Sunday:“It’s still Nvidia’s world”, and warned investors to be prepared for "post-Nvidia earnings volatility" regardless of how the stock price moves.