In This Article:
Key Takeaways
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This earnings season, all eyes will be on releases from AI and Data Center players.
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Nvidia stock hasn't moved much in the past three months after an incredible valuation run.
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Shares of Palantir gained nearly 300% in a year; Vertiv sees outsized sales growth for data center services.
The 2024 Q4 earnings season is gearing up to kick into a much higher gear following the release of the big banks’ results.
It looks to be another positive period, underpinned by strong and continued growth from tech. And as expected, all eyes will be on the AI/Data Center players, a trend we’ve become accustomed to over the last several years.
Let’s take a closer look at how expectations stack up for Vertiv VRT, Nvidia NVDA, and Palantir PLTR.
Nvidia Remains AI Leader
Likely the most important release of the earnings cycle yet again, AI-favorite Nvidia is set to reveal its quarterly results in mid-February. Though the stock is a late reporter, we’ll likely see some readthrough from other AI players leading up, such as Advanced Micro Devices.
The stock hasn’t done much in recent months, essentially flat on a three-month basis following an immense run. But both top and bottom line expectations have moved higher over the last several months, with the stock continuing the sport a favorable Zacks Rank #2 (Buy).
The company is expected to see 61% EPS growth on 70% higher sales, expected to be driven by another robust period of Data Center results. Below is a chart illustrating the company’s immense sales growth on a quarterly basis.
Image Source: Zacks Investment Research
Nvidia’s Data Center results have blown away our consensus expectations easily, with the most recent beat totaling a sizable $1.8 billion. It’s more than reasonable to expect another robust period here, with demand for AI-related offerings continuing to remain strong.
Image Source: Zacks Investment Research
Palantir Sees Huge Demand Wave
Palantir has thrust itself into the middle of the AI frenzy following rock-solid quarterly results stemming from strong demand, with shares delivering nearly a +300% gain over the last year.
EPS revisions for the quarter to be reported have been stagnant over recent months, but the top line outlook has brightened nicely, with the $779 million expected up 4% over the same period.
Image Source: Zacks Investment Research
The stock has cooled off so far in 2025, losing roughly 12% and underperforming. Nonetheless, another strong quarterly release could likely perk shares back up and get buyers interested again, with the AI story certainly not going anywhere anytime soon.