Nvidia is set to release its fourth-quarter earnings after the closing bell on Wednesday. Shares of the semiconductor company were down 6% year-to-date through Tuesday, trailing the S&P 500’s 1% gain. Wall Street is focused on how Nvidia plans to address the impact of China’s DeepSeek AI model. The company must demonstrate continued strong demand for its next-generation Blackwell chip.
Analyst Kunjan Sobhani from Bloomberg Intelligence noted that Nvidia is likely to meet its fourth-quarter revenue expectations and may raise its first-quarter guidance due to a ramp-up in Blackwell GPU shipments. Initial shipments to key customers began in Q4 and are expected to increase through Q1 2026. Nvidia’s profit margins could return to the mid-70s in the second half of the year after declining during the Blackwell production ramp.
The consensus fourth-quarter revenue estimate for Nvidia is $38.25 billion, with data center revenue estimated at $34.06 billion. For the first quarter, the revenue estimate is $42.26 billion.
— news from Business Insider