NVIDIA will release its earnings after the market closes.
Below are the expectations:.
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Revenue: Analysts forecasted revenue of approximately $43.3 billion, a 65% increase year-over-year ($26.04B), driven primarily by the data center segment (AI chips), expected to contribute ~$39.4 billion. NVIDIA’s guidance from the prior quarter projected $43 billion (±2%). The company has a history of beating revenue estimates for nine consecutive quarters.
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Earnings Per Share (EPS): Wall Street anticipated an adjusted EPS of $0.89 up from $0.61 last year. ~46% from the year-ago period. Zacks projected $0.93, while others cited $0.88. NVIDIA’s prior quarter reported $0.89 adjusted EPS, beating estimates.
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Gross Margin: Expected to be around 71%, slightly below prior quarters (mid-70s range), reflecting potential margin pressure from a $5.5 billion inventory write-down for the H20 chip due to China export restrictions.
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Key Focus Areas:
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Data Center and Blackwell: The Blackwell AI chip, which generated $11 billion in Q4 FY2025, was expected to see a “significant ramp” in sales. Data center revenue, a core driver (~90% of total revenue), was projected to remain robust despite China-related headwinds.
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China Impact: A $5.5 billion write-down on H20 chips, potentially representing $15 billion in lost China revenue, was a major investor concern. NVIDIA has pivoted to cheaper Blackwell chips for China to comply with export limits.
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Guidance: Investors were focused on Q2 FY2026 guidance, with analysts expecting ~$46.4 billion in revenue. Strong guidance could counter concerns about trade tensions and AI spending slowdowns.
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Market Sentiment: Despite a 19–22% stock decline from its 2025 peak due to trade war fears and tariff concerns, optimism remained high, with 87% of analysts rating NVDA a “Buy.” Options traders anticipated a 7% stock price swing post-earnings.
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For the year, the stock is up 1.78% or $2.28. The closing price for 2024 was at $134.29. The current price is at $136.47. The low price this year reached $86.62. That represented a decline of 35.4% from the 2024 closing level.
This article was written by Greg Michalowski at www.forexlive.com.
