Nvidia will report third-quarter results this week, and analysts expect revenue growth for the period to be the slowest in a year and a half. They will slow down even more in the current quarter. However, the company will earn from $5 billion to $13 billion from supplies of Blackwell accelerators, according to estimates, depending on the optimism of one or another analyst.
Image source: NVIDIA
Reuters summarized the forecasts of industry experts regarding Nvidia’s expected revenue from deliveries of Blackwell generation accelerators in the current quarter. Representatives of Morgan Stanley expect that in the fourth quarter Nvidia will earn between $5 and $6 billion from the supply of these accelerators, analysts at Piper Sandler raise the upper limit of the range to $8 billion, and experts at Spear Invest generally focus on a revenue range of $12 to $13 billion.
If we talk about Nvidia’s total revenue, it could have increased by 82.8% to $33.13 billion in the last quarter. Considering that over the previous five quarters the company’s revenue at least doubled year-over-year, the third quarter of the current one may signal a slowdown growth rate. Moreover, in the fourth quarter of the current fiscal year, which Nvidia’s calendar ends in January next, the company’s revenue may grow by only 67.6%, as analysts expect. Prior to this, Nvidia’s actual revenue exceeded analysts’ expectations for eight consecutive quarters.
Nvidia shares have more than tripled in price since the beginning of the year in the wake of the artificial intelligence boom, and any signs of a slowdown in the pace of its business development could reverse an upward trend throughout the stock market, when it comes to issuers in the technology sector. The need to invest heavily in the development and release of new computing accelerators will, in any case, reduce Nvidia’s profit margin in the fourth quarter to 73.6%, although previously it was almost three percentage points higher.