Nvidia (NASDAQ:) is set to report fiscal first quarter 2025 earnings after the close of trading on Wednesday, May 22.
Investors will be primarily focused on growth trends in Nvidia’s data center segment and any updates to the recently announced Blackwell platform.
Wall Street analysts forecast Nvidia’s revenue will reach $24.65 billion in the first quarter of fiscal 2025, up from the previous quarter and more than triple the year-ago period, according to Visible Alpha consensus estimates.
Net income is expected to rise to $12.87 billion, up significantly from the $2.04 billion profit recorded a year ago and higher than the final quarter of fiscal 2024. On a per-share basis, diluted earnings are expected to be $5.17, a sharp increase from 82 cents in the same period last year.
However, the key focus of Nvidia’s upcoming earnings report will be its data center segment. Nvidia is positioning itself as an early beneficiary of the artificial intelligence boom, which has led to the division’s rapid growth. Unprecedented demand for Nvidia’s advanced computing chips, which specialize in running artificial intelligence workloads, has contributed significantly to this expansion.
Citi analysts forecast Nvidia’s April quarter total sales and data center sales to be $24 billion and $21 billion, respectively, in line with expectations. They believe buyer estimates are higher at approximately $26 billion for total sales and $23 billion for data center sales.
For the July quarter, Citi forecast total sales of $27.5 billion, compared with the Street estimate of $26.5 billion and buyer expectations of about $28 billion.
“We expect slower growth compared to the previous few quarters driven by higher numbers, shorter lead times for 1H2020 and normalization of gross margins ahead of GB200 volume expansion in 1H2025,” Wall Street giant analysts said in a note. straight.
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“On the earnings side, we believe investors are focused on a) the GB200 ramp/pipeline, b) a potential air pocket in AI demand in the second half of 2024, c) the impact of B200 on LT’s gross margins, d) capacity constraints in center rollouts AI data processing and e) sovereign demand for artificial intelligence and China in H2020,” they added.
Meanwhile, in its pre-earnings report, Piper Sandler analysts said they continued to see strong demand for Nvidia’s data center products and believe the company is poised for another “breakthrough and upside” quarter.
“Demand for Hopper GPUs remains strong and supply is still working to meet demand as the product is still on sale. Our audits indicate that demand for the Blackwell GPU series will also be strong among NVDA data center customers,” they noted.
In terms of results, Piper Sandler’s forecast suggests that Nvidia’s total revenue could exceed current expectations by $1.5 billion to $2.0 billion in April, with a similar figure expected in July. If that happens, the investment firm expects Nvidia shares to remain flat or rise slightly following the report due to high investor expectations.