Nvidia (NVDA) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/11/20 2:01 am EST

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting results tomorrow afternoon. Here's what to expect.

Last quarter Nvidia reported revenues of $13.51 billion, up 101% year on year, beating analyst revenue expectations by 21.9%. It was an incredible quarter for the company, with beats across nearly every key metric. We were particularly impressed by its revenue beat, driven by strong performance in the data center segment which houses the company's AI chips division. Furthermore, we were encouraged by Nvidia's revenue guidance for next quarter, which blew past analysts' expectations.

Is Nvidia buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nvidia's revenue to grow 172% year on year to $16.11 billion, improving on the 16.5% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.39 per share.

Nvidia Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing six upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.5%.

Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Lattice Semiconductor delivered top-line growth of 11.4% year on year, beating analyst estimates by 0.2% and Allegro MicroSystems reported revenues up 15.9% year on year, exceeding estimates by 0.2%. Lattice Semiconductor traded down 12.3% on the results, and Allegro MicroSystems was down 4.0%.

Read our full analysis of Lattice Semiconductor's results here and Allegro MicroSystems's results here.

There has been positive sentiment among investors in the processors and graphics chips segment, with the stocks up on average 11.4% over the last month. Nvidia is up 14.9% during the same time, and is heading into the earnings with analyst price target of $641.9, compared to share price of $493.6.

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The author has no position in any of the stocks mentioned.