Nvidia Earnings Report Set to Spark Market Volatility

Nvidia's upcoming earnings report is a highly anticipated event that could have significant implications for the markets. The company, which makes chips that power the artificial intelligence boom, is expected to release its quarterly figures after the US close at around 22:00 CET.

Analysts polled by Bloomberg expect adjusted earnings of $2.09 a share on revenue of roughly $92 billion (€78.8bn), representing growth of 96% from the same quarter last year. Nvidia's own forecast was for $91 billion (€78bn) give or take 2%, making consensus just less than a percentage point above the company's midpoint.

Investors will be particularly interested in the data centre revenue, which is expected to top $85.4 billion (€73.1bn), up around 105%. The company has separated sales to hyperscalers and AI clouds from industrial and enterprise customers in its reporting last quarter, with projected figures of $43.5 billion (€37.2bn) and $41.7 billion (€35.7bn) respectively.

The main concern surrounding Nvidia's quarterly performance is concentration risk. The company still draws the bulk of its revenue from Amazon, Google, and Microsoft, each of which is designing its own chips to reduce reliance on Nvidia.