Top Line
Nvidia will disclose its initial financial results on Wednesday and provide its highly anticipated revenue report. This shows early how it will emerge from the release of the technology-intensive Deepseek AI model from China, providing what has led to the suffering of the AI giant. Last month, the largest market value loss in stock market history.
The Nvidia logo is located at Silicon Valley headquarters.
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Important facts
Nvidia will report revenues around 4:20pm on Wednesday, the fourth financial quarter that closes last month.
The stock shook ahead of the report, trading at as low as $124.44 per share, immersed around 4% by 10:30am on Tuesday, driving a 3% loss on Monday.
This week’s loss comes as tech stocks have been pulled back widely amid growing uncertainty among investors over uncertainty from President Donald Trump’s economic agenda. NASDAQ has reduced by about 1% each on Monday and Tuesday as the index has reached its lowest level since February 3rd.
With a market capitalization of $3.1 trillion, Nvidia has registered its lowest intraday stock price since February 5th. The stock navigated an unusually downstretch and traded below 12% ahead of its latest revenue report in November.
It also fell 10% last month during Deepseek selloff as the market expressed concern about a high-performance generation AI model that can be run within a small range of NVIDIA’s expensive semiconductor technology.
Nvidia Revenue Preview
Consensus analyst estimates require NVIDIA to report revenue of $38.1 billion and adjusted profit of $0.85 (net profit of $19.6 billion). This amounts to 72% revenue growth and 64% profit growth compared to the previous year. This is a very strong expansion for a company of the size of Nvidia, but it corresponds to the weakest top-line and bottom-line growth since the quarter. It ended in April 2023. The $33.5 billion forecast sales at NVIDIA’s data center units include the company’s graphics processing units (GPUs) powered by the most generated AI models. It achieved the weakest growth in seven quarters, marking 82% year-on-year growth. Despite the slower pace, Nvidia’s growth continues to be impressive, with a 4% revenue and a 10% increase in profits, and the only company with a higher market value than Nvidia recently It has been reported by Apple. Analysts are primarily optimistic about Nvidia stock despite recent retention patterns. The average price target of $175 among 68 analysts tracked by FactSet shows an upside of 38% from Nvidia’s stock on Tuesday. Wednesday’s revenue call “may mark a trough of investor sentiment,” said Bank of America Analyst, led by Vivek Arya, one of Wall Street’s most outspoken Nvidia Bulls, with a price target of $190. I predicted.
Important Quotes
In a memo on Tuesday, Wedbush analyst led by Dan Ives said “tomorrow is a “large day” for a global market that is a massive negative negative.
Important background
California-based Nvidia has become the poster child of the last decade of AI revolution as a leading designer of large-scale models of technology training. Analysts at Morgan Stanley estimate that Nvidia will win around 95% of the $158 billion GPU market in 2025. Nvidia’s dominant market share is the best-performing stock of 2023 and 2024 among the stocks listed in the S&P, and throughout those years. However, Nvidia has recently not surpassed the broader market, so it has soaked 3.1% over the past six months, worse than the 6.9% return on the benchmark S&P 500. Nvidia Cofounder and CEO Jensen Huang is the 13th most abundant person in the world, downplaying negative investors’ reactions to Deepseek’s release, and last week the idea of slowing AI spending was “completely against it.” “It was.”
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