Nvidia, the leader in artificial intelligence chips, is expected to report its third-quarter earnings with investors eagerly awaiting its growth prospects. Despite rising competition, Nvidia holds an 80% share of the fast-growing market for AI chips.
The company’s historic run has seen its stock rise nearly 19% since its last earnings report and eightfold since ChatGPT was released in late 2022. Analysts predict $33.12 billion in revenue, with a nearly 83% year-over-year growth rate. Nvidia’s data center business accounts for nearly 88% of sales, driving the company’s rapid growth.
The upcoming Blackwell chip, set to ship to major tech companies like Microsoft and Google, is crucial to Nvidia’s future growth prospects. Analysts expect demand for the chip to shape up, with some predictions pointing to overheating issues. However, CEO Jensen Huang is expected to address investor concerns about the chip’s performance on Wednesday.
Analysts are optimistic about Nvidia’s long-term prospects, with HSBC analyst Frank Lee predicting “further upside in 2026 data center momentum.” Nvidia’s growth will depend on its ability to continue growing in this rapidly expanding market.
Source: https://www.cnbc.com/2024/11/19/nvidia-must-show-blackwell-chip-can-drive-growth-in-earnings-report.html