Nvidia Quarterly Report Anticipation

Investing.com – Nvidia (NASDAQ:NVDA) is set to announce its latest quarterly results on Nov. 20, with investors eager for insights on the demand for its AI-enhancing hardware as we approach 2025.

Some analysts suggest that this release is as significant for markets as the US jobs report or consumer price data. Nvidia manufactures semiconductors essential for training and deploying AI-powered applications, positioning itself at the center of the growing excitement around this emerging technology.

Shares of Nvidia have surged over 200% this year, significantly affecting the US stock markets. The gains in the S&P 500 have heavily relied on Nvidia's performance.

Major tech companies like Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) are among Nvidia's biggest customers, investing extensively in its products for their AI innovations. Consequently, Nvidia's earnings serve as a barometer for the AI boom, especially as investors seek evidence of returns from hefty AI investments.

Analysts from UBS, led by Timothy Arcuri, acknowledge ongoing concerns but find encouragement in Google’s growing search and cloud divisions and Amazon’s AI-related cost savings.

CEO Jensen Huang reported in August robust demand for Nvidia's Hopper chips. However, the company's revenue guidance of $32.5 billion for the third quarter, plus or minus 2%, only slightly exceeded Wall Street expectations, leading to disappointment for some investors given Nvidia’s history of surpassing forecasts.

CFO Colette Kress indicated that the production of Nvidia’s next-generation Blackwell chips, which was previously delayed, is expected to ramp up in the fourth quarter and continue into Nvidia's fiscal year 2026. She mentioned they anticipate several billion dollars in Blackwell revenue during this time.

According to analysts at Piper Sandler, Nvidia executives are expected to discuss continued strong demand for the Blackwell chips in their third-quarter report. Despite potential supply constraints lasting into the first half of 2025, these chips could generate $5 billion to $8 billion in revenue for Nvidia in their January quarter. The analysts noted that as supply improves, more customers are expected to adopt the Blackwell chips beyond initial hyperscaler engagements in the following April quarter.