Nvidia is set to report its fiscal fourth-quarter earnings after markets close on Wednesday, with Wall Street expecting another record-breaking performance. Analysts are forecasting adjusted earnings per share of $1.53 and revenue of $66.2 billion, which would represent 68% growth from $39.3 billion in the same period a year ago. If confirmed, it would mark eleven consecutive quarters of revenue growth above 55% for the company that has become the defining beneficiary of the artificial intelligence boom.
The strong momentum is expected to continue, with analysts projecting 65% growth to $72.6 billion for the following quarter ending in April. A major tailwind comes from the four largest hyperscalers, Alphabet, Amazon, Meta and Microsoft, whose combined capital expenditure for the year could approach $700 billion as they build out AI infrastructure. A significant portion of that spending flows directly to Nvidia, which dominates the market for AI chips and supplies its graphics processing units to major tech companies as well as high-profile AI startups including OpenAI and Anthropic.
Nvidia now generates roughly 90% of its revenue from data center hardware, with that segment expected to post 70% growth to $60.7 billion this quarter. One area of concern heading into the results is the soaring cost of memory, which is facing a global shortage due to surging demand. Analysts will be watching Nvidia’s gross margin closely for signs of whether the company has been able to pass those rising costs on to customers. On its last earnings call in November, Nvidia guided for a gross margin of around 75% this quarter, up from 73.5% the prior quarter. Analysts at Cantor expect the margin to come in slightly higher, noting that close supply chain collaboration will be key to managing the impact of rising memory prices.
