NEWSLETTER
Nvidia's actions jumped in the first operations ahead of the long-awaited profit report of the fourth quarter of the Giant ai–tech Giant, due after the closure of the negotiation.
Nvidia (NVDA) A final result of $ 25.3 billion, or 84 cents per share, is expected to publish a gross margin in the 73.5%region.
Do not miss the move: Subscribe to the free newspaper of Thestreet
On the income side, the analysts on the income side see a general upper line of $ 38.05 billion, an increase of 72% compared to the previous year, with its key segment of the data center that reserves income of around $ 33.6 billion.
However, beyond the headline numbers, investors are likely to focus on a series of challenges that the Santa Clara Chips group, California will face next year, many of which have contributed to the decrease in actions of the actions of the actions. about 8.5%.
Below is a rapid compendium of five key problems in which investors are likely to focus when Nvidia informs after the closure of Wednesday's negotiation.
<img src="https://www.thestreet.com/.image/c_fit%2Ch_800%2Cw_1200/MjExOTUzMjE0NTc5Mjg4MDQw/us-computers-internet-technology-ces.jpg”>
1. NVIDIA short -term forecasts
Nvidia traditionally guides investors only a quarter ahead and generally focuses on gross income income and margins. That is a contrast with many companies in the technological space that broadcast forecasts throughout the year.
Analysts expect NVIDIA to forecast the revenues of April-Timestre in the region of $ 41.75 billion, which implies a 60% growth rate compared to the previous year, with probably stable margins in around 73.5%.
However, this year's prognosis will be the comment of Executive President Jensen Huang and/or his Chief of Finance, Colette Kress, when the income of his Blackwell processors of the highest price will exceed those of their inherited hopper courtyards.
Related: Nvidia profits can start a return to US actions.
“A strong quarter is excellent, but whenever its results are closely aligned with expectations, my main approach remains its term guide, that is the most important factor for me,” said Joe Tigay, Catalyst Nasdaq portfolio manager- 100 Hedded Equity Fund. “I believe in the long term in Nvidia, but I don't expect another year of growth of 140%.”
“The era of easy money can be behind us, but I still see strong returns ahead,” he added.
2. Deepseek impact on Nvidia
Nvidia's shares suffered the largest decrease in a single day of any company registered last month, with almost $ 600 billion in cleaned market value after the RI ai ai Chatbot based in China based in China was presented.
The startup, founded in 2023 by a former coverage fund manager, claims to have built a system of large -language models using lower price H800 chips and innovative training methods.
Investors feared that the rivals based in the USA. More income forecasts.
Related: the upper analyst reviews the price objective of Nvidia actions in the middle of deep questions
“We are not too worried about the impact of efficient models such as Deepseek and/or competition of (custom chip manufacturers), and we see any setback as an opportunity,” said Raymond analyst James Srini Pajjuri.
In addition, some analysts have argued that Depseek's success with chips and processors at reduced prices could envive a greater growth of sales, particularly in China, where US export rules limit the options of cloud service providers and others Deepseek competitors.
Huang's comment on Depseek's surprising advance, amid the reports that he could acquire high -end NVIDIA chips through the rear channels and the impact it will have on the spending plans of giant service providers in the Cloud and infrastructure will be tracked much later by investors. today.
3. Nvidia faces increasing competition
Nvidia orders an estimated 80% of the market for chips and processors that operate with ai. The domain creates a competitive pit that not only allows you (AMD) Broadcom (Avgo) and Marvell (MRVL) to erode its leadership in the market.
That could mean that a faster fiscal-q4 setting set than expected, or a short-term perspective off, from Nvidia could be paradoxically positive for the wider-ai chips sector. This is because such a result would allow competitors to challenge the leadership of NVIDIA and provide more options for large hyperscalers, as well as providers of smaller clouds and individual companies, to develop their ai infrastructure.
Related: Nvidia cuts the participation in the emerging rival as ai's arms race is heated
“We hope that the narration and the flow of news through the ai space continue to be erratic in the intermediate term,” said Cfra Angelo Zino analyst. “(But) in the long term, the increase in competitive pressures will help support a greater adoption of technology, since companies can take advantage of the most profitable options that can produce significant productivity improvements.”
4. The increase in the new Nvidia Blackwell chips
Nvidia is increasing the production of its Blackwell processors, the last line in its impressive Arsenal of ai, despite the limitations of the supply chain that have slowed the deliveries of the powerful but efficient systems in energy.
The ramp key will be the production and marketing of its GB200 NVL72, a liquid -refrigerated computer system based on 72 interconnected Blackwell processors integrated into a single shelf.
“We believe that EMS and server members are fighting significantly with the GB200 NVL shelves ramp and believes that shipments in (prosecutor Q4 and Q1) are tracking well below the plan,” said Keybanc Capital Markets John Vinh . “We estimate the shipments of Rack GB200” of more than 1,000 in the fourth fiscal quarter and more than 2,000 in the fiscal Q1.
RELATED: ANALIST REWORKS NVIDIA PRICE OF ACTIONS OBJECTIVE IN BLACKWELL DEMAND FORECAST
It is likely that Huang will talk to supplies limitations and how the orders of NVL72 have affected, which according to some estimates have a price of $ 3 million. Analysts expect sales in the region of $ 105 billion of NVL72 Rack, almost half of the revenue forecast of $ 197 billion Wall Street for the year.
5. Export restrictions that affect NVIDIA
In next year and beyond, Nvidia will need to navigate an increasingly complex set of rules and restrictions on the sale of high -end technologies to non -American companies. The attention will focus on the new regulations of the Trump administration.
According to reports, White House officials have sought ways to limit both the quality and the amount of sales of Chips NVIDIA to China, based on the rules established by President Joe Biden, as part of a broader effort to maintain the United States leadership in the space of ai.
Related: Nvidia Stock faces new concerns from China
The rules inherited from “dissemination”, established earlier this year, are also a concern, since they establish limits in the amount of computer power that US companies can send to different countries.
Earlier this year, the Vice President of Governmental Affairs of Nvidia, Ned Finkle, described the rules of the Biden era as a “general overreach … which seeks to undermine the leadership of the United States with a regulatory moron of more than 200 pages, written in secret and without an adequate legislative review.
Investors will seek comments from Huang, who met with Trump in Washington at the end of last month, both in the policies of the new administration and in their probable impact on the sales of Nvidia and in the broader ai sector.
Related: The veteran fund manager presents a striking prognosis S&P 500
