Nvidia CEO Jensen Huang. (MANDEL NGAN/AFP via Getty Images)
Nvidia (NVDA) will report its Q3 earnings after the closing bell on Wednesday, a week after the company announced a slew of new technologies during its GTC 2021 conference, and as its ARM deal faces fresh scrutiny from the UK's antitrust regulator.
Here’s what analysts are expecting from the company, as compiled by Bloomberg, versus how it performed in the same quarter last year.
Revenue: $6.81 billion versus $4.73 billion in Q3 last year
Earnings per share: $1.11 expected versus $0.73 in Q3 last year
Gaming revenue: $3.18 billion expected versus $2.27 billion in Q3 last year
Data Center revenue: $2.69 billion expected versus $1.90 billion in Q3 last year
To say Nvidia has had an incredible run in 2021 would be an understatement. The company’s stock is up 125% year-to-date, and it’s fresh off of debuting new hardware and software related to its metaverse platform, called Omniverse, its self-driving vehicle initiatives, and its artificial intelligence work.
But Nvidia, like other chipmakers, has also been stung by the chip shortage. The company’s consumer graphics cards are incredibly scarce thanks to a run on them by both cryptominers and resellers using bots to grab as many cards as possible.
As a result, cards are selling for hundreds of dollars above their manufacturer’s suggested retail price. Cards that should cost $599 are going for well north of $1,000, and finding any near their original prices is a pointless endeavor.
Nvidia still makes the majority of its cash on its games business, but the company’s data center arm has become increasingly important to the company’s future. The firm is a leader in large-scale artificial intelligence systems thanks to the power of its cards’ parallel processing, and it’s going to roll out its own CPU to ensure its data centers don’t have to use its competitors’ processors.
But not everything is going well for Nvidia. The company’s $40-billion plan to purchase chip designer ARM has hit a regulatory wall in the U.K. where it’s undergoing an in-depth review. It also needs to get through regulators in both the U.S. and China, before it’s finalized. If it ever gets approved.
Nvidia CEO Jensen Huang, told Yahoo Finance Live, however, that the company is prepared to move forward with or without ARM. And that it will continue to be successful regardless.
“We would go forward very nicely as we’re going forward today,” Huang said. “So we support all CPUs. We love the flourishing of CPUs and the reason for that is because the CPU is the first chip in the system. It boots the operating system. And wherever there are CPUs there are opportunities for accelerated computing.”
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