Nvidia Earnings Will Be Above Forecast

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Nvidia Earnings Will Be Above Forecast

Nvidia Earnings Will Be Above Forecast - Evercore

According to Evercore ISI, Nvidia's upcoming earnings report (NVDA) will be above forecast. They added that the main focus will be on the guidance as a lot of investors want clarity on AI adoption.

Despite all the hype and talk of AI, only 5% of US companies are using AI. No matter how we look at it, that's nowhere close to the hype AI has been generating in the last few years.

Nvidia Earnings Expected To Be Double

Also, a decline is expected in the hyperscale capital spending during the 2H2024. As these expenditures are linked to the sales of chips, it is nothing but bad news for Nvidia.

However, Evercore believes that any weakness in the market is actually an opportunity to buy. The reason? The influence of AI continues to expand in different sectors.

Evercore added that AI has also found its way into the sectors which are not that easy to automate. Including the retail sector and one big example is the use of GenAI in Walmart. According to Evercore, the companies that will be AI revolutionaries are State Street, Coca-Cola, and Nvidia.

The upcoming results of Nvidia will be released on Wednesday, and the company will announce its results for the Q2 of the fiscal year 2025.

According to forecasts, Nvidia's revenue will likely jump to $28.84 billion. That will be almost double or even more than the revenue from the same period last year.

Similarly, Nvidia's net income will likely double compared to last year. Nvidia's net income will likely be $14.95 billion.

Earlier, there were reports that Nvidia is facing a delay in the Blackwell chip. This led to a decline in the stock price, but Nvidia has already given assurances that they will ramp up production. Overall, things are looking really well for Nvidia, which has capitalized on the AI hype train.

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