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Nvidia (NASDAQ:NVDA) is slated to report fiscal fourth-quarter results on Wednesday and several Wall Street firms are expecting a “beat and raise” print from the GPU giant.
“While the Street across the board is anticipating another major ‘beat and raise’ special from Jensen & Co. its all about the pace of data center AI driven spending as the only game in town for GPUs to run generative AI applications all go through Nvidia,” Wedbush Securities analysts led by Dan Ives wrote in a note to clients.
Nvidia’s earnings are seen as “key” for the tech world and the broader markets, Wedbush added, citing the trajectory of GPU orders and demand from enterprise as being of utmost importance.
A consensus of analysts expect Nvidia to earn $4.63 per share on $20.54B in revenue.
Rosenblatt Securities analyst Hans Mosesmann also said he’s expecting a beat and raise from Nvidia, citing strong product momentum, including in its Hooper, Grace-Hopper, networking, and software segments.
Nvidia shares are up more than 50% year-to-date, well above the 10% of the broader semiconductor market, which is likely due to Wall Street’s realization that Nvidia’s artificial intelligence prowess is “an increasingly secular dynamic that cannot be easily understood” and compared to previous cycles, such as gaming or crypto, Mosesmann said.
Mosesmann reiterated his Buy rating and $1,100 price target on Nvidia shares ahead of the quarterly results and Nvidia’s GTC event next month.
Nvidia shares were down 1.2% in premarket trading on Tuesday.