Nvidia Earnings On Tap: What To Look For (Live Coverage)

Nvidia's earnings report for the fourth quarter of fiscal 2024 is set to be released on November 20, 2024, with a conference call scheduled for the same day. As investors await the results, here are some key aspects to focus on during the live coverage.

1. **Data Center Revenue Growth**: Nvidia's data center business has been a significant driver of growth, accounting for the majority of its revenue. In the previous quarter, data center sales surged 409% to $18.40 billion. Investors will be looking for continued strong performance in this segment, as well as any updates on the impact of U.S. restrictions on exporting advanced AI semiconductors to China.

2. **Gaming and Professional Visualization Revenue**: While the data center segment is expected to lead the growth, investors should also pay attention to the gaming and professional visualization segments. In the previous quarter, gaming revenue grew 56%, and professional visualization revenue increased 105%. Any insights into the performance of these segments can provide valuable information about Nvidia's overall business health.

3. **Gross Margin and Profitability**: Nvidia's gross margin has been on a steady rise, reaching 76% in the fourth quarter of fiscal 2024. Investors will be interested in any updates on gross margin trends and the factors driving profitability, such as the growth in the data center business and the impact of new products like the Hopper GPU computing platform.
4. **Earnings per Share (EPS) and Revenue Guidance**: Analysts expect Nvidia's EPS for Q4 FY2024 to be $4.93, up 765% from the year-ago period. Investors should pay close attention to any updates on EPS and revenue guidance for the upcoming quarters, as these can provide valuable insights into Nvidia's future growth prospects.
5. **Product Mix and Pricing Strategies**: As Nvidia continues to expand its data center business and launch new products like the upcoming Blackwell architecture, investors should monitor any changes in product mix and pricing strategies that may impact gross margins in the future.
6. **Geopolitical Tensions and Market Dynamics**: Geopolitical tensions, such as U.S. restrictions on exporting advanced AI semiconductors to China, can significantly impact Nvidia's data center revenue. Investors should be aware of any updates on these dynamics and their potential impact on Nvidia's business.

As the earnings report and conference call unfold, investors should keep an eye on these key aspects to better understand Nvidia's performance and future growth prospects. By staying informed and analyzing the data, investors can make more informed decisions about their investments in Nvidia and the broader tech sector.