Nvidia Earnings Anticipation

Investing.com reports that Nvidia (NASDAQ:NVDA) is set to announce earnings for the October quarter on November 20, with Citi predicting a smaller "beat & raise" amid the Blackwell transition.

Earnings Projections

Citi analyst Atif Malik forecasts total sales of $33 billion and data center sales of $29 billion, slightly below consensus estimates of $34 billion and $30 billion due to the transition to the Blackwell chip series.

January Quarter Outlook

Looking ahead to the January quarter, Malik has increased the data center sales forecast to reflect an estimated $3-4 billion from Blackwell. He notes that while Nvidia has resolved mask issues, they remain supply constrained. January quarter projections are now set at $36.5 billion in total sales and $32 billion in data center sales, compared to market expectations of $37.5 billion and $33 billion.

Gross Margin Expectations

A gross margin of 73% is projected, about 30 basis points below consensus, attributed to a higher mix of the H200 chip. Malik anticipates a larger "beat and raise" starting in the April quarter as gross margins improve with increased Blackwell chip sales.

EPS and Price Target Updates

Malik has revised EPS estimates for fiscal years 2025, 2026, and 2027 upward by $0.10, $0.55, and $0.08, respectively, due to higher data center sales. He has also raised the target price on Nvidia stock from $150 to $170 while maintaining a Buy rating.

Morgan Stanley's Perspective

Morgan Stanley (NYSE:MS) similarly raised estimates for Nvidia ahead of the earnings release. Analysts expect a strong quarter despite supply constraints but anticipate more significant upward revisions later in the year. Nvidia remains their top stock pick, with an Overweight rating, viewing this quarter as transitional and expecting meaningful upside in the second half of the year.