Earnings season is nearly over, but a big finale is expected this week. While over 90% of S&P 500 companies have already reported their results, some of the most highly anticipated updates are still to come.
The highlight will be Nvidia's earnings report, scheduled for release on Wednesday after the market closes. As the last of the Magnificent Seven tech giants to announce earnings, Nvidia — one of the S&P 500’s best-performing stocks this year — is expected to showcase robust revenue growth and shed light on the sustained demand for AI technology. The stakes couldn’t be higher.
Analysts project Nvidia will report record revenue of $33.2 billion, a 10% increase from the previous quarter’s $30 billion. Earnings per share are estimated at $0.74, up from $0.68 in the prior quarter. Year-over-year, Nvidia’s revenue is expected to jump 83%, while earnings are anticipated to soar by 85%.
Nvidia’s data center segment, its largest revenue driver, is forecast to generate $29 billion for the quarter — a staggering 100% increase compared to the $14.5 billion reported in the same period last year.
Investors are eager for updates on Nvidia's Blackwell AI chip, which CEO Jensen Huang has described as "a complete game changer for the industry." The Blackwell line, Nvidia’s next-generation AI chips designed for training and running AI applications, is expected to drive substantial revenue.
However, supply constraints could temper Nvidia’s near-term outlook. Morgan Stanley analysts cautioned that while strong demand persists, "the bigger upward revisions may come later in the year." Nvidia has indicated it expects several billion dollars in Blackwell-related revenue during the January quarter as production ramps up.
Huang noted that demand for Blackwell chips already exceeds supply and is likely to continue outstripping production capacity in the coming year. Meanwhile, Nvidia’s Hopper chip, the Blackwell predecessor, is expected to remain in demand in the next quarter.
Nvidia faces potential geopolitical headwinds as president-elect Donald Trump has proposed sweeping tariffs on global products, including semiconductor imports. Taiwan, where the majority of Nvidia’s chips are manufactured by TSMC, could be a particular focus. If tariffs on Taiwanese chips are enacted as an alternative to the CHIPS Act, Nvidia may face higher costs, forcing it to either absorb the expense or pass it along to customers, potentially compressing margins.
Nvidia stock has seen a remarkable rally this year, gaining nearly 200% with just 6% more to reach that milestone.
However, the road hasn’t been without hurdles. At one point, the company lost close to $280 billion in market capitalization during a single trading session, highlighting the volatility that often accompanies high-growth stocks.
Investors should brace for potential price swings leading up to Wednesday’s report and during after-hours trading. With Nvidia positioned at the crossroads of AI innovation and geopolitical challenges, its upcoming earnings release could set the tone for the broader tech sector.
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