Nvidia Q4 earnings report set for Wednesday as tariff, export control threats loom

Key Points

  • Nvidia (NVDA) is set to report its Q4 earnings, with focus on revenue from its Blackwell chips and the impact of potential tariffs and export controls to China.
  • Despite competition, Nvidia remains the leader in AI chips, with major tech companies like Amazon, Google, Meta, and Microsoft investing heavily in Nvidia's technology for their AI data centers.
  • Wall Street anticipates Nvidia's EPS to increase by 63% and revenue by 73% compared to last year, though this growth might be seen as underwhelming given last year's performance.
  • Nvidia faces challenges from competitors developing more efficient AI models and potential threats from tariffs on chips imported from Taiwan and export restrictions to China.
  • Nvidia's CEO, Jensen Huang, argues that the development of powerful AI models by competitors like DeepSeek actually increases demand for Nvidia's high-end chips.

Summary

Nvidia is gearing up to announce its Q4 earnings, with the spotlight on its revenue from the Blackwell line of chips and how it's addressing potential tariffs and export controls affecting shipments to China. Despite these challenges, Nvidia continues to dominate the AI chip market, with its technology being integral to the AI data centers of major tech firms like Amazon, Google, Meta, and Microsoft. Analysts expect Nvidia's earnings per share to rise by 63% and revenue by 73% year-over-year, though this might not meet investor expectations given the company's previous year's performance. The company's data center business is expected to be the primary revenue driver, with gaming and other segments contributing less. Nvidia's stock has seen a decline year-to-date, reflecting broader struggles among Big Tech companies. However, Nvidia's CEO, Jensen Huang, remains optimistic, suggesting that the development of advanced AI models by competitors could actually boost demand for Nvidia's top-tier processors. Additionally, concerns about competitors developing their own AI chips and potential trade restrictions loom, but Nvidia's established ecosystem and market position provide some reassurance against these threats.

yahoo
February 26, 2025
Stocks
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