Nvidia Earnings Live Blog Preview

Among the things to watch for are GPU sales to the cloud giants, gaming GPU sales and commentary on the recently-closed acquisition of Mellanox.
Author:
Updated:
Original:

Nvidia  (NVDA) - Get Report reports its April quarter (fiscal first quarter) earnings on Thursday after the close, and all eyes will be on whether the red-hot chipmaker can continue the gains that have seen its shares rise more than 50% so far year to date.

Eric Jhonsa, TheStreet and RealMoney’s tech columnist, is live blogging Nvidia’s report, which is expected to arrive around 4:20 p.m. ET on Thursday, and the earnings call with analysts scheduled for 5:30 p.m. ET.

Analysts polled by FactSet are expecting revenue of $2.97 billion (up 34% year over year), GAAP EPS of $1.39 and non-GAAP-EPS of $1.66. For the July quarter, the revenue consensus is $3.23 billion, an increase of 25% from the year-ago period.

Among the key things to watch for are Nvidia’s GPU sales to the cloud giants, which are expected to rise 66% annually to $1.05 billion in the quarter; gaming GPU sales, which are expected to rise 23% to $1.3 billion; commentary on the recently closed acquisition of data center interconnect and hardware supplier Mellanox Technologies, including how it performed in the April quarter and expectations for the July quarter; automotive segment sales, which are expected to fall 3% to $161 million due to Covid-19 plant shutdowns; and the chipmaker’s gross margin growth. 

The company guided in February for an April quarter non-GAAP GM of 65.4%, plus or minus 0.5%, which at its midpoint implies a 7-point annual increase. 

With the help of favorable comparables and strong high-margin server GPU sales, Nvidia’s non-GAAP gross margins rose 9.4 percentage points year over year in its January quarter to 65.4%.

Nvidia is a holding in Jim Cramer’s Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells NVDA? Learn more now.