Wall Street is laser-focused on Nvidia's new Blackwell chip as the AI titan heads into 3rd-quarter earnings
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Nvidia will report third-quarter earnings after the market close on Wednesday.
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Wall Street's main focus is customer demand for Nvidia's Blackwell GPU chip.
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Analysts are mostly bullish and expect strong demand for Nvidia's GPUs and significant revenue growth.
Nvidia is set to report third-quarter earnings results after the market close on Wednesday, and all eyes are on its next-generation Blackwell GPU chip.
While Nvidia has guided that its Blackwell production won't be fully ramped until early 2025, Wall Street is looking for clues about how many orders it has received for the product.
Early indications suggest that Nvidia could register incremental revenue from its Blackwell chips in the quarter, as it begins early shipments.
According to estimates, that, combined with continued sales of its H100 and H200 GPU clusters, is expected to help Nvidia deliver third-quarter revenue of about $33 billion, representing 83% year-over-year revenue growth.
Here's what Wall Street is saying about Nvidia's upcoming earnings report.
CFRA Research: 'Temper expectations for Blackwell'
According to CFRA Research analyst Angelo Zino, investors should tamp down expectations that Nvidia will offer strong guidance for its highly anticipated Blackwell launch.
"We caution investors to temper expectations for Blackwell inclusion for the Jan-Q outlook (we conservatively look for $3B-$5B in sales), limiting upside to consensus views in the near term as NVDA likely takes a somewhat conservative stance to provide itself with a buffer," Zino said in a recent note.
Still, Zino expects Blackwell chips will be sold out for much of 2025.
"We expect Blackwell to be supply constrained through CY 25, given heightened demand from hyperscalers to support next-generation data centers. In addition to Blackwell expectations/performance concerns that will likely dominate NVDA's Q&A session on the call, we expect investors to dissect any comments on tariffs/Sovereign AI after Trump's victory," Zino said.
CFRA Research rates Nvidia at "Buy" with a $160 price target.
Goldman Sachs: 'We expect strong demand'
Analysts at Goldman Sachs said they're hyper-focused on Nvidia's guidance for the fourth quarter, which they expect should confirm their bullish thesis on the stock.
They added that they expect the company's "break out" quarter to be the first quarter of 2025 as the Blackwell product launch ramps up.
Goldman Sachs expects Nvidia to deliver $34.3 billion in revenue for the third quarter, with adjusted earnings per share at $0.79, which is above consensus estimates.