Nvidia Earnings: Beating Estimates May Not Sufficient
Nvidia is set to report its earnings on Wednesday after the closing bell. Wall Street expects adjusted earnings of roughly $2.08 per share on revenue of $91.9 billion, nearly double last year's figures.
The company itself guided for $91 billion in revenue, give or take 2%, alongside an adjusted gross margin near 75%. Gross margin measures how much revenue remains after production costs.
Nvidia's main engine is data-center revenue, but traders should listen for Blackwell shipments, Rubin development, and infrastructure constraints. Demand may be enormous while customers still struggle to secure power, land, and completed data centers. China is another wildcard, with Nvidia excluded Chinese data-center compute revenue from its quarterly guidance.
Nvidia's valuation near $5.2 trillion means beating estimates may only qualify the company for harder questions. The options market implies a post-earnings move of roughly 6% to 8%, representing approximately $310 billion to $420 billion of market value.