Nvidia is set to release its third-quarter earnings after the closing bell on Wednesday. The chipmaking giant's shares have seen an impressive 197% year-to-date gain through Tuesday, outpacing the S&P 500's 24% increase. Wall Street is optimistic about the stock, citing strong revenue growth and the high demand for Nvidia GPUs.

Customer Demand for Blackwell GPU Chip: A Key Focus

For investors, the top concern is the customer demand for Nvidia's Blackwell GPU chip. Although the chipmaking company has stated that full production of the chip won't be achieved until early 2025, Wall Street is eager to gain insights into the number of orders received for this product. This demand will play a crucial role in shaping the company's future performance. 1: The Blackwell chip holds significant potential for Nvidia. Its advanced capabilities are expected to drive further growth in the data center and gaming sectors. The anticipation surrounding its launch has led to increased investor interest, as it could potentially revolutionize the industry. 2: However, the challenges of ramping up production and meeting market demand cannot be overlooked. Nvidia will need to carefully manage its supply chain and production processes to ensure a smooth transition to full-scale production. Any delays or issues in this regard could impact the company's financial results.

CFRA Research's Perspective on Nvidia's Guidance

CFRA Research analyst Angelo Zino advises investors to manage their expectations regarding Nvidia's highly anticipated Blackwell launch. He cautions that while the product has the potential to be a game-changer, it is important to be realistic about the initial sales figures. 1: Zino believes that Nvidia is likely to adopt a conservative stance in providing guidance to give itself some flexibility. This approach may limit the upside in the near term but is necessary to ensure the success of the Blackwell launch. 2: Despite the cautious stance, Zino expects Blackwell chips to be in high demand throughout 2025. The increased demand from hyperscalers for next-generation data centers is expected to drive sales, although there are concerns about tariffs and sovereign AI that will need to be addressed during the Q&A session.

Bloomberg's Revenue Estimates for Nvidia

Bloomberg provides valuable insights into Nvidia's revenue estimates for the third and fourth quarters. The consensus estimate for the third quarter is $33.25 billion, with significant contributions from the data center ($29.14 billion), gaming ($3.06 billion), professional visualization ($477.7 million), and automotive ($364.4 million) sectors. 1: The adjusted gross margin is estimated to be 75%, indicating the company's ability to generate strong profits. Additionally, the R&D expenses are projected at $3.34 billion, and the adjusted operating expenses are estimated at $2.99 billion, highlighting the company's investment in research and development. 2: For the fourth quarter, the revenue estimate is $37.1 billion, with an adjusted gross margin of 73.5%. The adjusted operating expenses are expected to be $3.21 billion, showing the company's continued focus on cost management.