NVIDIA is scheduled to release its fiscal Q3 2024 earnings after the market closes on Wednesday, November 20. As a leader in the semiconductor and AI industries, NVIDIA’s financial performance is drawing intense market attention. Here’s a breakdown of four key areas to watch:
1. Revenue Outlook
NVIDIA is expected to post impressive Q3 growth, with analysts eyeing the following highlights:
- Revenue: Forecasted at $33.2 billion, marking an 83.2% year-over-year (YoY) increase but slightly lower than last quarter’s 112.4% YoY surge.
- Gross Margin: Predicted at 75.0%, a slight dip from Q2's 75.1%.
- CapEx: Projected to fall to $6.8 billion from $9.97 billion in Q2.
- EPS: Expected at $0.74, up from $0.67.
Investors are also closely monitoring NVIDIA’s next-gen AI chip, Blackwell. Despite its anticipated revenue contribution in Q4, reports of overheating issues have raised concerns. The earnings call is expected to provide updates on production and delivery plans.
2. Data Center Dominance
NVIDIA’s data center division is a powerhouse, accounting for nearly 90% of total revenue.
- Q2 Performance: A record $26.3 billion in revenue, up 154% YoY.
- Q3 Forecast: Expected to hit $29.1 billion, reflecting 100.6% YoY growth.
This growth is fueled by surging AI adoption and NVIDIA’s leading GPU technology. As global demand for AI and cloud computing solutions rises, analysts will look for NVIDIA’s strategy to maintain its edge in an increasingly competitive market.
3. Days sales of inventory: A Key Indicator for Assessing AI Bubble Risk
"Days sales of inventory (DSI)" is a critical indicator for evaluating whether the booming AI market might be facing lack of demand, oversupply risks. Higher inventory potentially signals a bubble.
NVIDIA’s DSI remain at historically low levels, a stark contrast to the inventory surplus issues seen during 2022. This trend underscores the sustained and robust demand for AI-related products.
Actually, it's not only Nvidia. Industry-wide observations suggest that other semiconductor companies are also maintaining strict inventory controls, keeping inventory pressure relatively low and mitigating destocking challenges ahead.
4. CapExs: Evidence of Sustained AI Demand
Capital expenditures (CapEx) by tech giants, including NVIDIA, provide valuable insights into the long-term trends shaping the AI industry.
- Q2 & Q3 Performance: In Q2 2024, the total CapEx among the M7 tech giants (NVIDIA, alongside six other major players) reached a record high. For Q3, even excluding NVIDIA’s yet-to-be-released data, the cumulative CapEx has already exceeded $60 billion, reflecting a YoY growth rate of over 40%.
- Forecast: Company forecasts indicate that CapEx spending in 2024 may surpass 2023 levels, reinforcing its role as a key driver of productivity and innovation cycles.
Further analysis has shown a strong correlation between CapEx trends and global semiconductor sales, underscoring CapEx as a critical "fuel" and "momentum" for AI and semiconductor growth. NVIDIA’s CapEx figures in Q3 will offer a clearer view of its commitment to future AI infrastructure and innovation.
NVIDIA’s Q3 2024 earnings report will be a crucial event for the company and the broader tech industry. All the data and charts mentioned above are available in MacroMicro’s newly launched Industry Intelligence Hub. This section consolidates comprehensive insights and monitoring tools for seven major industries' supply chains. With the Black Friday Bundle, you can gain free access to this exclusive session. Click here to learn more.
NVIDIA is scheduled to release its fiscal Q3 2024 earnings after the market closes on Wednesday, November 20. As a leader in the semiconductor and AI industries, NVIDIA’s financial performance is drawing intense market attention. Here’s a breakdown of four key areas to watch:
1. Revenue Outlook
NVIDIA is expected to post impressive Q3 growth, with analysts eyeing the following highlights:
- Revenue: Forecasted at $33.2 billion, marking an 83.2% year-over-year (YoY) increase but slightly lower than last quarter’s 112.4% YoY surge.
- Gross Margin: Predicted at 75.0%, a slight dip from Q2's 75.1%.
- CapEx: Projected to fall to $6.8 billion from $9.97 billion in Q2.
- EPS: Expected at $0.74, up from $0.67.
Investors are also closely monitoring NVIDIA’s next-gen AI chip, Blackwell. Despite its anticipated revenue contribution in Q4, reports of overheating issues have raised concerns. The earnings call is expected to provide updates on production and delivery plans.
2. Data Center Dominance
NVIDIA’s data center division is a powerhouse, accounting for nearly 90% of total revenue.
- Q2 Performance: A record $26.3 billion in revenue, up 154% YoY.
- Q3 Forecast: Expected to hit $29.1 billion, reflecting 100.6% YoY growth.
This growth is fueled by surging AI adoption and NVIDIA’s leading GPU technology. As global demand for AI and cloud computing solutions rises, analysts will look for NVIDIA’s strategy to maintain its edge in an increasingly competitive market.
3. Days sales of inventory: A Key Indicator for Assessing AI Bubble Risk
"Days sales of inventory (DSI)" is a critical indicator for evaluating whether the booming AI market might be facing lack of demand, oversupply risks. Higher inventory potentially signals a bubble.
NVIDIA’s DSI remain at historically low levels, a stark contrast to the inventory surplus issues seen during 2022. This trend underscores the sustained and robust demand for AI-related products.
Actually, it's not only Nvidia. Industry-wide observations suggest that other semiconductor companies are also maintaining strict inventory controls, keeping inventory pressure relatively low and mitigating destocking challenges ahead.
4. CapExs: Evidence of Sustained AI Demand
Capital expenditures (CapEx) by tech giants, including NVIDIA, provide valuable insights into the long-term trends shaping the AI industry.
- Q2 & Q3 Performance: In Q2 2024, the total CapEx among the M7 tech giants (NVIDIA, alongside six other major players) reached a record high. For Q3, even excluding NVIDIA’s yet-to-be-released data, the cumulative CapEx has already exceeded $60 billion, reflecting a YoY growth rate of over 40%.
- Forecast: Company forecasts indicate that CapEx spending in 2024 may surpass 2023 levels, reinforcing its role as a key driver of productivity and innovation cycles.
Further analysis has shown a strong correlation between CapEx trends and global semiconductor sales, underscoring CapEx as a critical "fuel" and "momentum" for AI and semiconductor growth. NVIDIA’s CapEx figures in Q3 will offer a clearer view of its commitment to future AI infrastructure and innovation.
NVIDIA’s Q3 2024 earnings report will be a crucial event for the company and the broader tech industry. All the data and charts mentioned above are available in MacroMicro’s newly launched Industry Intelligence Hub. This section consolidates comprehensive insights and monitoring tools for seven major industries' supply chains. With the Black Friday Bundle, you can gain free access to this exclusive session. Click here to learn more.
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