OpenAI<\/a>, one of its biggest customers. A recent media report said it plans to replace that commitment with a smaller $30 billion investment.<\/p>\n“This earnings in particular is important because people are so concerned about AI spending – whether \u2060we’re in a bubble,” said Ivana Delevska, chief investment officer of Spear Invest, which holds the company’s shares in an exchange-traded fund. “Showing that earnings are not really decelerating will be pretty important.”<\/p>\n
Wall Street expects Nvidia to report that profit in the quarter ended January surged more than 62%, according to data compiled by LSEG, a slowdown from 65.3% growth in the previous quarter as it faces tougher comparisons \u200bwith \u200bits previous earnings.<\/p>\n
Revenue likely jumped more than 68% to $66.16 billion. Analysts expect Nvidia to forecast that first \u200bquarter revenue will grow another 64.4% to $72.46 billion. The company has surpassed \u200csales expectations for the past 13 quarters, though that delta has shrunk.<\/p>\n
RBC analysts expect the company to forecast April quarter revenue at least 3% above estimates. Spear Invest’s Delevska, an Nvidia bull, sees the company forecasting sales as much as $10 billion above estimates, expecting it to surpass market estimates by more than 13%.<\/p>\n
STILL NO. 1<\/p>\n
Analysts are still expecting demand for Nvidia’s pricey chips, which act as the “brains” of servers processing huge AI workloads to remain robust, and garner most of Big Tech’s massive spending to expand AI data center capacity this year.<\/p>\n
Nvidia’s executives also hinted in January that they were discussing data center orders for next year with customers, leading several analysts to forecast the company would update a $500 billion order backlog figure it \u200cfirst offered in October.<\/p>\n
The biggest constraint on Nvidia’s growth, though, could be supply chain bottlenecks that limit the \u200bspeed of AI chip shipments as Nvidia and rivals are vying for space on contract chipmaker TSMC’s 3-nanometer assembly \u200blines.<\/p>\n
“We think Nvidia will meet expectations, but it is hard to see them delivering \u200bmuch upside in light of TSMC capacity,” Jay Goldberg of Seaport Research Partners wrote in a note.<\/p>\n
But the potential return of Nvidia’s AI chip \u200csales to China – earlier restricted due to export curbs placed by the \u200bU.S. government – could help bump up sales.<\/p>\n
CEO Jensen \u200bHuang said last month he hopes China will allow the company to sell its powerful H200 AI chip in the country and that the license is being finalised.<\/p>\n
Rival AMD added sales of AI chips back to its forecast for the current quarter after it received licenses to ship some of its modified processors to China.<\/p>\n
Nvidia is \u200bexpected to record adjusted gross margin of 75% in the fourth \u200cquarter, an increase of more than one percentage point from the year-ago period.<\/p>\n
Analysts don’t expect the company to hurt from the global memory supply shortage. Nvidia’s \u200bpricing power and the likelihood of it already having locked in high-bandwidth memory allocations for the year would cushion it from the impact of rising memory \u200bprices, they said.<\/p>\n
(Reporting by Arsheeya Bajwa and Aditya Soni in Bengaluru; Editing by Sayantani Ghosh)<\/p>\n","protected":false},"excerpt":{"rendered":"By Arsheeya Bajwa and Aditya Soni Feb 24 (Reuters) – As Nvidia heads into quarterly earnings on Wednesday,…\n","protected":false},"author":2,"featured_media":299921,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,111,139,1042,69,57833,145],"class_list":["post-299920","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-new-zealand","tag-newzealand","tag-nvidia","tag-nz","tag-quarterly-earnings","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/299920","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=299920"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/299920\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/299921"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=299920"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=299920"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=299920"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}