Nvidia was rising early on Tuesday as the market braces for the chip maker’s earnings.
Nvidia shares were up 2% at $142.92 in morning trading. The stock fell 1.3% on Monday, following a report that servers connecting together dozens of the company’s Blackwell AI chips had faced someoverheating issues.
Nvidia reports earnings after the bell on Wednesday. The focus will be on how quickly it can ramp up Blackwell sales in the face of any technical challenges.
Nvidia is expected to report adjusted earnings of 71 cents a share on revenue of $33.1 billion after the close on Wednesday, according to a FactSet poll of analysts’ estimates.
The more important factor is likely to be Nvidia’s guidance for its January quarter. The “whisper numbers”—unofficial estimates by analysts that are communicated to some clients—are for Nvidia to forecast revenue in a range of $39 billion to $40 billion, according to Mizuho analyst Jordan Klein.
“Expectations have risen to historically high levels of optimism, which we think could limit post-print upside potential even if commentary from Nvidia’s upcoming earnings call helps to quell these fears,” wrote Stifel analyst Ruben Roy.
However, Roy still raised his target price on Nvidia stock to $180 from $165 and kept a Buy rating on the stock, arguing the focus should shift to the company’s medium-term prospects as Blackwell sales ramp up.
Among other chip makers, AMD was down 0.5% and Broadcom was falling 0.8% in morning trading.
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