NVIDIA earnings preview: expectations high

[MongiIG]

AI tech giant NVIDIA is reporting later today with the chip leader expected to deliver another blockbuster revenue forecast.

 

 Angela Barnes | Financial presenter/producer, London | Publication date: Tuesday 21 November 2023 10:54

However, the focus will be on whether widening US curbs on sales of its high-end chips to China could hamper that run. The Street sees earnings of $3.36 per share on revenue of $16.18 billion. These results will also be a major test for the AI-powered rally that has helped drive up the US stock market this year.

(AI Video Transcript)

NVIDIA

NVIDIA, a big player in the world of artificial intelligence (AI) chips, is expected to announce impressive earnings. However, there are worries about how the growing restrictions on the company's high-end chip sales to China will affect its business. NVIDIA is projected to earn $336 per share with revenue reaching $16.18 billion. This is important because it will show how well the AI-powered rally has contributed to the growth of the US stock market.

Chinese chip orders

Recently, the Biden administration banned the sales of certain chips to China, and this has raised concerns. However, NVIDIA is confident that these restrictions won't have an immediate impact on their business. But back in October, their stock took a big hit when there were reports that Chinese orders worth up to $5 billion were in jeopardy. China is NVIDIA's third-largest market, making up over 20% of their revenue.

NVIDIA's stock

NVIDIA's stock had been doing really well earlier this year, and it even became the first trillion-dollar chip company. However, it dropped more than 12% between August and October because of worries about the situation in China. Despite these challenges, the stock is currently trading up by 2.56% today, according to the iG platform.

To sum it up, everyone is eagerly waiting for NVIDIA's upcoming earnings announcement, especially the revenue forecast. People are concerned about how the US restrictions on chip sales to China will affect the company, even though NVIDIA doesn't expect any immediate consequences. The recent performance of their stock shows that investors are becoming more cautious as the situation in China continues to unfold.

 

 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.