Recent statement from Nvidia in end-April shows that its graphics processing units (GPUs) are ‘restocked and reloaded’, which suggests that the peak of GPU shortages may be nearing or even past its peak. An area of uncertainty will be the potential easing of global chip shortages, which may make further rise in ASPs unsustainable.

Nvidia’s earnings before interest, taxes, depreciation, and amortization (EBITDA) margin has remained resilient thus far, with its product technological advantage allowing rising costs to be passed on to consumers through higher average selling prices (ASPs). Bitcoin and Ether are currently trading down around 36% and 45% year-to-date at the time of writing. This is considering that mining demand tends to fade in line with falling cryptocurrency prices, which translates to lesser demand for Nvidia’s cryptocurrency mining processor (CMP) sales. That said, a key risk to watch may be the plunging cryptocurrency prices from April into May, which may be a potential roadblock for its gaming segment. Ahead, the huge untapped market for consumers’ upgrades to newer versions of its GTX-series graphics cards may continue to be a catalyst to underpin demand in the months ahead. While revenue growth may be expected to moderate further on a YoY basis from the initial Covid-19 pandemic surge, an expected 43.4% increase still points to an above-trend growth rate over the past five years. Recent outperformance for Advanced Micro Devices (AMD) results point to resilient demand in the data-centre space, which may bode well for Nvidia by highlighting ongoing tailwind from enterprises’ digital shift into artificial intelligence (AI) and high-performance computing. Nvidia earnings – what to expectįor the upcoming earnings release, much will still depend on its two core business segments, gaming and data centres, to deliver. Revenue is also expected to increase to $8.1 billion, up 43.4% from a year ago. At the time of writing, expectations for its Q1 earnings per share (EPS) is coming in at $1.29, up 40.2% year-on-year (YoY).

NVIDIA is set to release its quarter one (Q1) financial results on, after market closes.

Nvda earnings date 2017