Nvidia is set to report its fiscal first-quarter results after the market closes on Wednesday, with analysts expecting a record quarter from the chipmaking giant. The company’s revenue is expected to reach $43.38 billion, a 66% increase year-over-year, and adjusted net income of $21.29 billion.
The growth is attributed to significant investments in AI infrastructure by major tech companies such as Meta, Google, Apple, Amazon, and Microsoft. Nvidia supplies a disproportionate amount of the AI server value, making it a key beneficiary of these investments.
Analysts may ask CEO Jensen Huang about sales in China, which have been affected by tighter export controls imposed by the Trump administration earlier this year. However, analysts predict that the impact will be relatively modest, as China now accounts for only 5% of Nvidia’s total sales.
Nvidia has warned of a $5.5 billion charge due to restrictions on its H20 chip, but its stock is still up about 25% over the past 12 months and has “outperform” ratings from top analysts. The consensus price target is near $164, suggesting around 25% upside from Friday’s closing price.
Source: https://www.investopedia.com/what-analysts-think-of-nvidia-stock-ahead-of-earnings-11740324