Cylonphoto Analysts generally expect another boost in guidance from Nvidia. (0:17) Big win for banks in capital requirement plans? (3:57) UBS picks its favorite AI stocks . (5:59) Wall Street will hear for the biggest stock in the market currently when Nvidia ( NASDAQ: NVDA ) reports earnings on Wednesday.
The chip giant is expected to report revenue of $24.6 billion and EPS of $5.53 for the quarter.
Data center revenue is forecast to have more than tripled from a year ago to $20.97 billion, while gaming segment revenue is seen rising 16.7% to $2.
61 billion. Nvidia is seen reporting an adjusted gross margin rate of 77%, adjusted operating income of $16.3 billion, and free cash flow of $11.
78 billion. Investors will be looking past the quarterly numbers when determining if Nvidia deserves its $2.3 trillion AI-boosted premium valuation.
Analysts largely anticipate that Nvidia will raise the bar with guidance. Jefferies said even a beat-and-raise quarter from Nvidia could take a backseat to the cadence on the ramp of the Grace Blackwell exascale computer. "We believe the ramp of the GB200 NVL products is a large driver for the story as NVDA will once again extend their control to a greater portion of the AI system design.
" Seeking Alpha Analyst Mott Capital Management says “the market is pricing a post-earnings move of about 8.5% following Nvidia's results. Based on market expectations, this could mean the shares trade as high as $1,025 or as low as $865.
” They add that the .
