Nvidia is set to announce its latest quarterly earnings on November 20, with investors keenly anticipating insights on the demand trajectory for its AI-accelerating hardware as 2025 approaches. Nvidia’s role in advancing artificial intelligence through its cutting-edge semiconductor technology has elevated its earnings release to a market-moving event, on par with key economic indicators like the U.S. jobs report and consumer price data.
The tech giant’s stock has already soared over 200% in 2023, significantly contributing to the S&P 500’s gains and highlighting Nvidia’s outsized influence on the U.S. stock market. Nvidia’s chips are essential in training and deploying AI applications, fueling the explosive interest in AI technology.
Major tech companies, including Alphabet (Google’s parent company) and Amazon, are among Nvidia’s largest customers, investing heavily in Nvidia’s products to power their AI-driven innovations. Nvidia’s earnings provide an important pulse check on the AI industry’s health, especially as investors seek confirmation that large-scale AI investments are yielding measurable returns.
In a recent note, UBS analysts led by Timothy Arcuri acknowledged ongoing concerns among investors but cited positive signs from growth in Google’s search and cloud segments and Amazon’s reported cost savings via AI as encouraging indicators.
In August, Nvidia CEO Jensen Huang highlighted strong demand for its current-generation Hopper chips. The company’s guidance for third-quarter revenue, estimated at $32.5 billion (plus or minus 2%), was only slightly above Wall Street projections. While a modest beat may appear underwhelming given Nvidia’s recent trend of exceeding expectations, it still showcases robust demand.
On the innovation front, CFO Colette Kress shared an update on Nvidia’s upcoming Blackwell chips, announcing that production, initially delayed, is now expected to ramp up in the fourth quarter and continue into Nvidia’s fiscal 2026.
“In the fourth quarter, we expect to ship several billion dollars in Blackwell revenue,” Kress said, underscoring the chip’s importance for future growth.
Piper Sandler analysts suggest that Nvidia executives are likely to emphasize “extremely strong demand” for the Blackwell chips during the earnings call. Despite projected supply constraints through early 2025, analysts estimate the chips could drive $5 billion to $8 billion in revenue in Nvidia’s January quarter.
“As supply improves, we expect more customers to adopt Blackwell beyond initial hyperscaler demand in the following April quarter,” the analysts noted, suggesting a sustained growth path for Nvidia’s AI offerings.
This upcoming earnings report will serve as a critical benchmark for both Nvidia and the broader AI industry, offering insight into whether the company can maintain its growth trajectory and meet surging demand amid a rapidly evolving technological landscape.
(Sources: investing.com, reuters.com)
