Nvidia Prepares for 'Beat-And-Raise' Quarter Amid Strong AI Demand
Nvidia's upcoming earnings call is expected to be another 'beat-and-raise' quarter, as investors watch for margins, HBM costs, China sales, and the Rubin Ultra product roadmap. Jefferies calls AI demand 'rock-solid,' citing commitments from Microsoft, Amazon, SpaceX, and OpenAI.
Revenue is expected to more than double year-over-year to $91.5 billion, with adjusted EPS hitting $2.07. The company's growing role as an financier of the AI ecosystem will be a key topic, including its partially backstopped arrangements involving $500 billion with large asset managers and potential investment in AI data-labeling startup Mercor.
Nvidia's stock has fallen 1% on Wednesday to close at $217.56, down 4% this week, but analysts remain bullish. Stifel reiterated its 'Buy' rating and $282 target, implying a 30% upside, as hyperscaler spending and AI infrastructure orders remain strong.