Nvidia (NVDA) is scheduled to release its third quarter fiscal 2025 financial results on Wednesday, November 20th. Goldman Sachs Managing Director Toshiya Hari joins Sheena Smith and Madison Mills on Catalyst to discuss what to expect from major artificial intelligence (AI) players.
Analysts highlight two things they have in mind heading into earnings. That means the demand environment for Nvidia products and its strengths beyond AI training in inference to support the chipmaker’s growth are strong and sustainable.
“First of all, the environment remains very strong from a demand profile perspective. If there’s a problem, it’s not a demand problem, it’s a supply problem.” Hari said Alphabet (GOOG, GOOGL), While hyperscalers like Microsoft (MSFT) and Amazon (AMZN) are Nvidia’s biggest AI customers building AI infrastructure, “the customer profile is expanding beyond hyperscalers to include enterprises and sovereigns.” says. state. So there’s a demand there across the board. ”
“Secondly, I think there has been a perception, historically, that Nvidia is very strong in training, but as we move into inference, we may become less competitive… (although) the growth opportunity for Nvidia is not set. “This could potentially expand their competitive advantage.”
The analyst said NVIDIA’s ability to “really innovate across multiple components” at a “pace of 12 to 18 months” has differentiated it from others and secured its dominant position in the AI space. states. “I think it’s going to be very difficult, challenging and expensive for other companies to compete head-on with Nvidia.”
While the market appears bullish on NVIDIA in the near term, Hari said there are “big question marks” as investors try to figure out whether hyperscalers will continue to spend billions on NVIDIA chips. The outlook is for calendar year 2026.
Although Nvidia recently hit new highs, Hari is one of the analysts who thinks the stock still has room to grow. “We expect the stock to go up from here,” he said ahead of Nvidia’s report, as hyperscalers announce earnings results that could push stock prices higher.
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This post was written by Naomi Buchanan.
