– May lead to considerable revisions – E24

AI giant Nvidia has delivered insane growth time and again, only to shatter expectations time and again. Will it happen again?

The AI ​​hotshot supplies data chips used in the development of AI technology and will announce the results on Wednesday evening. Last quarterLast quarterNvidia has a different fiscal year. The last quarter covers May, June, and July of this year, which in their case is called Q2 2025..

Nvidia’s revenue is expected to jump again to $28.86 billion, according to Bloomberg estimates. In this case, it will more than double every year, equivalent to a growth rate of about 114%.

Compared with the previous quarter, there will still be a significant brake. The growth rate is 262%.

– They are a reference not only for data chips, but also for artificial intelligence as a whole. Daniel Morgan, senior portfolio manager at Synovus Trust, said that if Nvidia fails to achieve its goals, investors will sell all artificial intelligence companies. Reuters.

After-tax results are expected to be $15.96 billion, or $0.65 per share in adjusted earnings.

‘The most important in the world’

Robert Næss, investment director at Nordea Markets, told E24 that Nvidia’s results are the most important in the world, reflecting the recent rise of artificial intelligence on stock exchanges around the world.

He further stated that the company has indicated that it expects revenue of $28 billion, slightly below analysts’ expectations. However, in recent years, Nvidia has delivered about 2 billion more than the forecasts they have put forward.

– This could mean that the market is realistically hoping for a turnover of $30 billion. If that happens, the ratio could grow further. If they deliver less than $28 billion, it could be a big disappointment, he said.

The AI ​​wave has driven Nvidia’s stock price higher since the beginning of 2023. This continued until this summer, when the stock price slipped slightly, especially in July and August.

However, following the stock market turmoil in early August, Nvidia, like the rest of the U.S. market, has since recovered most of its losses.

Currently, Nvidia is in a very close race with Microsoft to become the second most valuable company in the world after Apple. Nvidia’s market cap is just over $3.1 trillion.

– May lead to considerable corrections

– EMJ Capital’s Eric Jackson on Nvidia: “This is the most important stock in the world right now.” American Financial Channel.

Nvidia’s numbers are one of the first big things to happen in the market this week, both in terms of company earnings and macroeconomic data. Later in the week, the U.S. will release GDP and inflation data, among other things.

Baird analyst Ross Mayfield said there are few significant financials ahead of Nvidia, so you’re really in wait-and-see mode. American Financial Channel Tuesday.

– The current trend in the market is to move away from technology, and Nvidia could change all that tomorrow, he continued.

Dec Mullarkey, managing director of SLC Management, believes there has been a shift away from some of the more extreme bets on AI and a more sober tone.

– Mullarkey said if they disappoint in any way, it could lead to a sizable correction and spillover effects. Financial Times.

Michael Schulman, investment director at Running Point Capital, noted that Nvidia’s huge earnings growth may be about to slow down.

– We are about to hit the law of large numbers here. When a company reaches a certain size, it is virtually impossible to keep growing at the same rate, Schulman told Reuters.

Strong investment

Big tech companies are now investing a lot of money in the development of artificial intelligence technology. Nvidia has made a lot of money from its dominant position as a supplier of computing chips and the products needed, such as its “Hopper” chip.

Yuan One of the tech giants announced another increase in AI investments in its latest quarterly report.

Beyond the financial aspects, there is tension over what updates Nvidia will bring to its products, such as its upcoming “Blackwell” chips. There are rumors that the launch of the new generation of chips will be delayed.

– The company reported delayed Blackwell chip deliveries. Robert Ness said the vast majority of analysts believed that this would be insignificant and that growth in other products would make up for it.

– They have already started supplying a simpler chip, the B20, to China. He further said that it will probably sell well.