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Nvidia is set to announce quarterly results that could offer clues about the health of the generative AI revolution.
As the company that’s cornered the market on the processors needed to run large generative models, Nvidia’s earnings serve as a signpost for where the AI hype train is headed. That’s especially true this week, after investors spent the past few months wringing their hands over a potentially popping AI bubble.
A team of analysts at Wedbush Securities wrote in a research note that Nvidia earnings would make for “the most important week for the stock market this year and potentially in years.”
Here’s what to look for after market close on Wednesday:
- The company has a high bar to clear: Analysts expect its revenue to more than double YoY to $28.2 billion, according to the Zacks Investment Research consensus.
- Investors will pay attention to updates about reported production delays around Nvidia’s new Blackwell chip. Nvidia told Reuters this month that it’s on track to ramp up production later this year, but a delay could have consequences for Microsoft, Meta, and other AI giants. At least one analyst thinks demand for the previous Hopper architecture could fill the gap, however, according to Reuters.
- Evercore ISI strategists said in a note that guidance for next quarter will be key to reassuring Wall Street, “as investors remain skittish on AI adoption,” Investing.com reported.
Recent earnings beats from Microsoft, Google, and other companies that have invested heavily in AI bode well for Nvidia, but expect any signs of trouble to reverberate—not only for Nvidia’s share price, but potentially for the Big Tech companies that rely on it.