Home Finance Wall Street Eyes ‘Growing Paints’ in Nvidia income, but all eyes are aimed at a bullish 2nd half for its next generation of chip

Wall Street Eyes ‘Growing Paints’ in Nvidia income, but all eyes are aimed at a bullish 2nd half for its next generation of chip

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Nvidia sends a sell signal and its massive rally marks the peak of a 40-year market cycle, says veteran strategist
A photo of Nvidia CEO Jensen Huang
AP Photo/David Zalubowski, File; Getty images; Chelsea Jia Feng/BI
  • NVIDIA will report income on Wednesday, with investors focused on Blackwell Demand Impact of Deepseek.

  • The AI ​​model of Deepseek released concern about reduced GPU sales when it made it debut last month.

  • Most analysts expect Nvidia to beat income estimates and possibly increase guidance.

Nvidia Has a high bar to erase when it reports the win of the fourth quarter after the last bell on Wednesday.

If it is the second largest company in the world, Nvidia will have to prove investors that the demand for his next generation is the question of his next generation Blackwell Chip Remains strong and that the company will not be negatively influenced by the shocking debut of the Deepseek AI model of China.

Last month Deepseek expressed his concern among investors that data centers did not need as much computing power as initially expected, which would lead to less GPU sales for Nvidia.

NVIDIA CEO Jensen Huang has argued The efficiency of Deepseek will only speed up the speed at which AI is assumed and advanced.

According to Bloomberg data, the average analyst estimate suggests that Nvidia will grow its turnover by 73% to $ 38.2 billion in the quarter, compared to a turnover of around $ 20 billion.

This is what Wall Street says about the upcoming winning report from Nvidia.

Analysts at Mizuho said that although they expect Nvidia to report an “in-line” winning report, they also expect some “growing pains”.

“Our checks indicate that although Janq DC in-line is expected, Aprilq could be more flat because slopes remain modest in the short term, since GB200 Power/Cooling requirements,” said Mizuho in a note last week.

DC refers to the income of Nvidia’s data center, which includes its GPU chip sale.

For Mizuho, ​​the focus is on the second half of the year, because it expects a “strong” Blackwell ramp to make up any lost income in the first half of the year.

“We continue to see NVDA who stimulates strong leadership in industry with its Cuda ecosystem, on top of its integrated HW platform where it has strong customer relationships,” said Mizuho, ​​adding that important customers expects Microsoft, Amazon and Alphabet to be expected to Turbo comprine purchases later this year.

Mizuho Rates Nvidia on “Outperform” with a price target of $ 175.

Analysts at Wedbush said that the big question that goes into the income is whether it will again be a “$ 2 billion beat and $ 2 billion increased” quarter. The company thinks they can do it.

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