Nvidia (NASDAQ:) is scheduled to report its fiscal first-quarter 2025 earnings after the closing bell on Wednesday, May 22.
Investors will primarily focus on growth trends in Nvidia's data center segment and any updates to the recently announced Blackwell platform.
Wall Street analysts expect Nvidia's revenue to reach $24.65 billion for the first quarter of fiscal 2025, up from the previous quarter and more than tripling from the same period last year, according to Visible Alpha estimates.
Net income is expected to rise to $12.87 billion, significantly higher than the $2.04 billion profit reported a year ago and higher than the fourth quarter of fiscal 2024. On a per-share basis, diluted earnings are expected to be $5.17, an increase Sharp from 82 cents in the same period last year.
However, the main focus of Nvidia's upcoming earnings report will be its data center segment. Nvidia has positioned itself as an early beneficiary of the AI boom, resulting in rapid growth in the division. Unprecedented demand for Nvidia's advanced computing chips, which specialize in running AI workloads, has dramatically driven this expansion.
Citi analysts expect Nvidia's April quarter and data center sales to total $24 billion and $21 billion, respectively, in line with expectations. They believe buy-side estimates are higher at about $26 billion for total sales and $23 billion for data center sales.
For the July quarter, Citi expects sales to total $27.5 billion, compared to Street estimates of $26.5 billion and a buy-side forecast of about $28 billion.
“We expect a smaller beat compared to the previous few quarters on larger numbers, shorter H100 lead times, and gross margin normalization before GB200 volume picks up in 1H25,” analysts at the Wall Street giant said in a note.
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“Given earnings, we believe investors are focused on a) GB200 ramp/pipeline, b) potential air pocket in AI demand in 2H24, c) B200 impact on LT gross margins, d) power constraints on AI data center deployments, and they added: “Sovereign AI demand and China H20.”
Meanwhile, in a pre-earnings report, Piper Sandler analysts said they continue to see strong demand for Nvidia's data center products and believe the company is poised for another quarter of “outperformance and upside.”
“Demand for Hopper GPUs remains strong, with supply still working to catch up with demand as the product is still being customized. Our examinations indicate that demand for the Blackwell GPU series will also be strong across NVDA's data center customer base.
In terms of results, Piper Sandler's bullish case suggests that Nvidia's total revenue could beat current expectations by $1.5 billion to $2.0 billion for April, with a similar beat expected for July. If this happens, the investment firm expects Nvidia stock to be flat or slightly higher after the print release due to high investor expectations.
