Nvidia, a leading technology company known for its graphics processing units (GPUs), is set to release its first quarter earnings report on May 22, 2024. The company's stock has already gained almost 90% this year and analysts expect strong revenue growth from its data center business. However, some investors are questioning whether there is further upside from the earnings report due to high expectations.
In other news, Reddit has announced a new partnership with OpenAI. OpenAI will gain access to Reddit's Data API, which will help bring enhanced content to ChatGPT and new products. The deal is expected to help Reddit diversify its revenue streams.
Nvidia's data center revenue is projected to reach $200 billion in calendar 2025, a significant increase from the previous year. Analysts expect Nvidia to report $5.54 in adjusted earnings per share and $24.6 billion in revenue for Q1, with most of the revenue coming from data center sales.
Despite concerns that clients may hold off on orders for Nvidia's Hopper chips while waiting for the next generation Blackwell chips, it is expected they will not. The stock has already gained almost 90% this year and some analysts question further upside from the earnings report due to high expectations.
Reddit and OpenAI announced a new partnership on May 17, 2024. OpenAI will bring enhanced Reddit content to ChatGPT and new products. The deal is expected to help Reddit diversify its revenue streams.
Nvidia's market cap is now the third largest in the S&P 500 behind Microsoft and Apple. The company was previously known for graphics chips for video games and crypto miners but has grown significantly in importance due to its role in AI and data processing.
OpenAI will gain access to Reddit's Data API, which will enable the company's AI tools to better understand and showcase Reddit content, especially on recent topics. Reddit, meanwhile, will gain a new advertising partner in OpenAI.
Nvidia was previously known for graphics chips for video games and crypto miners but has grown significantly in importance due to its role in AI and data processing. The company's data center revenue is projected to reach $200 billion in calendar 2025, a significant increase from the previous year.
Analysts expect Nvidia to report $5.54 in adjusted earnings per share and $24.6 billion in revenue for Q1, with most of the revenue coming from data center sales. There were concerns that clients may hold off on orders for Nvidia's Hopper chips while waiting for the next generation Blackwell chips, but it is expected they will not.
Despite these positive developments, some investors are questioning whether there is further upside from the earnings report due to high expectations. The stock has already gained almost 90% this year and some analysts believe that any additional gains may be limited until the company provides more clarity on its future growth prospects.
