Nvidia is about to dominate one other Big Tech earnings season

We’re rolling into what is predicted to be one other wild tech earnings season, and you possibly can bet AI goes to be front and center. And if there’s one company that everyone seems to be watching, it’s Nvidia (NVDA).

Shares of the chip giant are up greater than 16% within the last month, and the stock is currently on pace to unseat Apple as the most important publicly traded company by market capitalization.

The jump comes after Nvidia CEO Jensen Huang said demand for the corporate’s upcoming Blackwell chip is “insane” during an interview with CNBC on Oct. 3. Since then, shares of Nvidia have climbed roughly 18%, topping out at $130. But reports that the Biden administration will establish a cap on the variety of AI chips that may be shipped to certain countries put the rally on hold Tuesday before recovering some ground Wednesday.

Nvidia’s incredible stock performance and meteoric rise in data center sales over the past yr have put the corporate in a difficult position for its upcoming earnings announcement, which it has yet to officially schedule.

Nvidia CEO Jensen Huang during his keynote address at Nvidia GTC in San Jose, Calif. on March 18, 2024. (AP Photo/Eric Risberg) (ASSOCIATED PRESS)

In the corporate’s fiscal Q3 2024, overall revenue soared 206% to $18.1 billion, while data center revenue rose a whopping 279% to $14.5 billion. And while Nvidia isn’t staring down a decline in revenue, its growth will likely slow versus the identical period last yr, which could spook investors.

Don’t imagine me? Just take a take a look at what happened after the corporate announced its Q2 earnings back in August. While the corporate beat on revenue and earnings per share, with data center revenue increasing 154% yr over yr to $26.3 billion, Nvidia shares still fell greater than 6% immediately following the announcement. It took greater than a month for the corporate’s stock price to recuperate.

The AI trade hasn’t raised all ships, either. Shares of Broadcom (AVGO) jumped 59% yr to this point, outpacing the broader S&P 500 (GSPC), which rose 21%. Qualcomm (QCOM) climbed 19% and AMD (AMD) added just 6% to its stock price. Intel (INTC), meanwhile, fell a shocking 55%.

Broadcom advantages from its involvement in AI infrastructure, connecting servers and the like, while Qualcomm is seen as a possible beneficiary of on-device AI growth via AI smartphones and AI PCs. AMD is facing off against Nvidia and serves as a substitute on each price and availability.

Then there’s Intel, which is struggling amid its enormous turnaround effort that features constructing out its third-party chip fabrication capabilities in addition to attempting to catch Nvidia and AMD within the AI processor space.

But Nvidia continues to be the hands-down star of the show this earnings season. Investors will likely be on the lookout for signs of continued AI spending from hyperscalers like Microsoft (MSFT), Google (GOOG, GOOGL), Meta (META), and Amazon (AMZN), which make up an enormous portion of AI sales, to get a way of how well Nvidia chips are selling.

They’ll also take a look at how other chip firms perform this quarter ahead of Nvidia’s announcement, which tends to be far later within the earnings cycle than its contemporaries.

Wall Street will similarly be looking out for details about Nvidia’s Blackwell rollout and whether the corporate is facing any supply constraints because it did with its Hopper chips. Either way, it’s going to be a wild few weeks. Buckle up.