Jensen Huang, co-founder and CEO of Nvidia Corp., speaks throughout a information convention in Taipei on Could 21, 2025.
I-hwa Cheng | Afp | Getty Photographs
Nvidia studies fiscal first-quarter earnings on Wednesday after the bell.
This is what Wall Avenue is anticipating, per LSEG:
- Earnings per share: 93 cents, adjusted
- Income: $43.31 billion
Wall Avenue is anticipating the AI chip large to information for 99 cents in adjusted earnings per share on $45.9 billion of gross sales within the July quarter.
Nvidia continues to see large development from its gross sales of graphics processors, with demand for the corporate’s AI chips displaying no indicators of cooling.
However there’s one large query on many traders’ minds throughout this earnings name: China.
On April 9, the Trump administration despatched Nvidia a letter that mentioned it might require an export license for the corporate’s H20 chip, a model of its Hopper AI chips specifically designed for the Chinese language market to adjust to earlier U.S. restrictions.
Nvidia mentioned it might take a $5.5 billion writedown on stock. Nvidia analysts will probably be carefully seeking to see what affect the restrictions have on the corporate’s income.
Nvidia CEO Jensen Huang additionally took to the highway in latest weeks to promote the corporate’s AI infrastructure to overseas nations, together with Saudi Arabia. He’ll probably need to tackle the subject on Wednesday, too, and provides some perception into how the corporate sees the present export management regime.
Except for Nvidia’s geopolitical points, the massive story will probably be if Blackwell, the corporate’s present era of AI GPUs, has sufficient provide and continues to see infinite demand.
However in the end, what traders will need to see is the corporate confidently saying that demand for its Blackwell merchandise — just like the GB200 racks which can be presently delivery — stays robust.
“The important thing right here is the optimism round GB200 bettering, and robust demand, and if the corporate could make the case for that, the inventory ought to react properly, in our view even when numbers do not change a lot,” wrote Morgan Stanley analyst Joseph Moore in a word on Tuesday.
Wall Avenue is anticipating 66% development within the April quarter. However that is nonetheless a pointy deceleration from a 12 months in the past, when the corporate’s income greater than tripled.
Powering Nvidia’s large development is gross sales to a handful of large cloud suppliers, usually referred to as hyperscalers. These cloud firms are shopping for as lots of Nvidia’s Blackwell chips as they will to energy and set up into knowledge facilities.
Earlier this month, hyperscalers resembling Microsoft and Meta mentioned they deliberate to proceed aggressively spending on AI.
