NVIDIA earnings loom: A closer look at expectations

The Q1 earnings cycle continues to roll along, with this week’s reporting docket highlighted by none other than AI favorite NVIDIA (NVDA). The release will wrap up the reporting cycle for the broader Mag 7 group as well, whose growth has remained strong overall.

As has been the case over the past several years, the release is among the most important during the period. We’ve learned again this earnings season that many companies remain committed to big CapEx plans concerning their AI infrastructure buildouts, a key development to keep in mind heading into the release.

Quarterly estimates

Both EPS and sales expectations for NVIDIA’s upcoming print remain bullish, with the giant expected to see 120% EPS growth on nearly 80% higher sales. The growth that NVDA has witnessed has been historical, a development we likely won’t see from a company its size in a long time.

Data center expectations

To little surprise, Data Center results from NVIDIA will be the major focus, which have been the primary driving force behind its positivity over recent years. Unrelenting demand has led to huge growth, with everybody wanting the AI GPUs.

Below is a chart illustrating the company’s Data Center sales on a quarterly basis. Our consensus estimate for Data Center sales for the quarter to be reported stands at $73.2 billion, well above the $39.1 billion mark in the same period last year.

Bottom line

NVIDIA’s (NVDA) release will wrap up the reporting cycle for the Mag 7 group, whose results were overall positive and constructive. It’s more than reasonable to expect the AI favorite to spend the bulk of its time discussing the AI outlook, a trend many have become accustomed to over recent years.