Nvidia (NVDA) has become Wall Street's poster boy for every new area of technology that is white hot -- machine learning, artificial intelligence, autonomous cars and augmented and virtual reality. After a record breaking 2016, which saw the stock gain nearly 300%, the graphics processor maker is going to have a lot to live up to in investors eyes, with some experts not sure it can.
"We are Underweight [Nvidia] due to signs of desktop GPU market saturation, lower margins from incremental Nintendo Switch revenue and a possible sales pause in the company's data center business this summer," Pacific Crest Securities analyst Michael McConnell wrote in an investor note ahead of earnings.
Nvidia, led by CEO Jen-Hsun Huang, is still largely dependent upon the PC gaming market for the majority of its revenues, but its other areas, like data centers are growing fast, thanks to the explosion of machine learning and artificial intelligence over the past 12 months.
In the 2017 fiscal fourth-quarter, Nvidia had $2.17 billion in sales, including $1.348 billion from gaming. Its datacenter business accounted for $296 million, while automotive accounted for $128 million.
Nvidia's GPUs are some of the most advanced in the world and as datacenters, autonomous cars and other machines need heavier computing power, GPUs have been tasked with handling the problem.
Investors will be looking to hear what Nvidia has to say about its four main categories, as well as any updates to partnerships the company announced in recent months.
Analysts surveyed by Yahoo! Finance expect the company to lose an adjusted 67 cents a share on $1.91 billion in revenue for the period.
Over the past 12 months, shares of Tesla have gained nearly 194%, blowing away the near 11% gain in the S&P 500.
Here are five ETFs that may benefit if investors like Nvidia's first-quarter results.