Nvidia's Q1 earnings: 3 things to watch

Nvidia (NVDA) is set to report its first quarter earnings after the closing bell on Wednesday. Yahoo Finance's Ines Ferré breaks down three things investors should look out for in the upcoming report.

First, she points to AI chip demand. Back in March, Nvidia announced its new Blackwell chip, which is expected to hit the market later this year. Some analysts expect to see a slowdown during the transition from the company's H100 chips, while others believe there won't be an issue. Among increasing competition in the field, many analysts also feel the company will be able to keep its market share due to its platform and software stack.

Analysts will also closely watch Nvidia's capital expenditure, which peaked in January 2024.

Finally, Ferré points to Nvidia's data center revenue as a major point to watch in its earnings. Data center revenue is projected to continue surging and is a key area of the company's growth.

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This post was written by Melanie Riehl

Video transcript

Good morning, everyone.

Our top story.

A i darling NVIDIA, edging higher ahead of its big first quarter earnings report.

That's out after the closing bell Wednesday.

Now expectations.

They are sky high and we wanna break it all down for you here with the three things that you you need to watch out for in this report is Yahoo Finance's Innes Fre Anne.

Yeah, Brad.

And of course, first up is a I chip demand now.

In March, NVIDIA announced its new Blackwell chip.

That model is expected to come on to the market later this year.

And while some analysts expect to see a slow down during the transition from the company's H 100 chips, others don't see an air pocket up ahead.

NVIDIA is expected to start seeing a rise also in competition from Intel, Samsung and others.

However, prominent analysts on the street are still feel the company will keep its market share due to its platform and software stack, which I'll get to in a second.

Analysts will also be taking a look at Capex for the company, how much they're spending on investments now.

Capex for NVIDIA appears to have peaked in January of 2024 and, lastly, the company's data centre revenue.

This has exploded in recent quarters and is projected to keep growing out of the more than 24 billion in revenue, which NVIDIA is expected to announce about 21 billion of that, a large majority of it could come from its data centre segment.

NVIDIA CEO has said before.

What NVIDIA sells is data centre.

Yes, they make chips, but the chips don't work all by themselves.

NVIDIA builds entire data centres for a I, and this is what Wall Street is most excited about, guys.