Nvidia (NVDA) stock is in focus ahead of the artificial intelligence (AI) chipmaker’s third quarter earnings report.
Goldman Sachs senior equity analyst Jim Schneider shares what he’s expecting from Nvidia’s earnings print. Watch the video above to hear more.
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00:00 Speaker A
What does this all of this mean for Nvidia, which reports after the close today? I mean, you know, the numbers there also just keep getting revised upward.
00:10 Jim
Yes, and and we’re expecting the same thing tonight. So we’re expecting the company to deliver a very strong quarter, um above the street. We expect management to guide above the street for the January quarter as well. Um and really that’s just going to translate to nearly 60% year-over-year revenue growth. So that’s still very, very healthy level of growth. and really what’s driving that is the data center segment for Nvidia. That’s both the processors, the GPUs that they are providing to actually process all the AI queries, both on the training and inference side, as well as the networking chips that sort of stitch all those processors together and allow them to talk to each other.
00:53 Speaker A
Jim, what is the biggest risk for Nvidia? If there are any cracks, where would you be looking for them?
01:02 Jim
Yeah, I don’t think we’re going to see many cracks uh this quarter. I think that people continue to look for elements of increased competition in the space. It seems like Nvidia still has a very, very strong hold competitively, especially on the AI training workloads. Uh and those models, those LLM models are still evolving very, very quickly. And so the programmability that Nvidia affords you and those developers is still really kind of commanding a premium in the market. So we don’t really slowly see that slowing down anytime soon.
