Nvidia is scheduled to release its latest financial results at approximately 8.20am AEDT on Thursday. Dan Ives from Wedbush Securities anticipates the company will significantly surpass market expectations. Ives notes that Nvidia plays a fundamental role in the ongoing AI revolution and expects the company to exceed previous estimates. Wedbush’s assessment is based on positive data gathered from Asian supply chain checks, along with substantial capital expenditure figures reported by hyperscalers in late October. Nvidia specialises in graphics processing units (GPUs) and other technologies crucial for gaming, professional visualisation, data centres, and automotive industries. The company’s products are integral to advancements in artificial intelligence and machine learning.
Ives believes strong demand for Nvidia’s Blackwell computer chip will be a key discussion point during the company’s conference call. He also notes the significant impact of existing China chip restrictions, implemented during the Trump administration, which remain relevant amid ongoing trade negotiations. According to Ives, current Wall Street estimates for Nvidia over the next few years are considerably underestimated, given the increasing global demand fuelled by the AI revolution. He suggests that we are only in the early stages of this technological shift.
Wedbush Securities projects that capital expenditure from major technology companies alone will exceed $US550 billion ($845 billion) in 2026. Furthermore, they anticipate substantial growth from increased adoption by enterprises, governments, and global entities within the next 12 to 18 months. Nvidia’s advanced chips are expected to play a central role in this fourth industrial revolution. The company is positioned to benefit significantly from these trends as AI adoption continues to expand across various sectors.
Ives believes that Nvidia’s earnings, future guidance, and any optimistic commentary from CEO Jensen Huang will serve as a positive catalyst for technology stocks as the year concludes. The earnings call will provide an important validation of the global demand and overall magnitude of the AI revolution, particularly from Huang’s perspective.
