As NVIDIA (NVDA) prepares to report its first quarter results for fiscal 2025, Hennion & Walsh CIO Kevin Mahn joins Market Domination to share his expectations for the chipmaker and how it will affect the market. (^DJI,^GSPC, ^)IXIC).
The company is expected to report earnings of approximately $5.22 per share, an increase of 406% from the prior year. Maan says he expects NVIDIA to announce more data centers, which are key components of the AI ecosystem. He added that there is a unique opportunity for energy companies, as data centers alone are estimated to consume about 10% of the country's electricity by 2030.
Mahn said NVIDIA “could be the ultimate winner in the AI race” as it promises 25x lower costs and power consumption with its new Blackwell chips. “NVIDIA is moving beyond just chips to offer a complete packaged AI solution, as well as increasing capital investment in data centers. They're not stopping here and will continue to grow. “Deaf,'' he added.
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This post was written by Melanie Leal
video transcript
Yes, it's me. I was going to be there, Kat.
I want you to do a video on the deck earnings after the bell tomorrow.
I just want to explain what you expect there.
And how important is this to the market?
This is very important, but we expect earnings per share to be around $5.22.
If that happens, it would represent a 406% year-over-year increase.
And I believe we'll see more talk about NVIDIA building its own data centers.
Data centers are often forgotten.
Part of the AI ecosystem.
In the previous segment, you mentioned that there is a huge demand for electricity from data centers.
It is estimated that data centers alone will consume approximately 10% of Japan's electricity by 2030.
Isn't that amazing?
But other companies are stepping in to fill just that need.
A company like ver that we like in the industrial field.
what do they do?
We supply power, infrastructure and cooling solutions to data centers.
What about your wrist and network?
The company supplies Ethernet switches that power data centers and keep them running efficiently.
There are plenty of opportunities outside of NVIDIA, but it's no wonder everyone is focused on NVIDIA. So which one is it?
And it's A.
That's clearly true, and I don't think they've given up on NVIDIA.
They may be the ultimate winners of the air race.
But there are more opportunities, just ask NVIDIA specific questions. Because there was a report in today's Financial Times that Amazon was suspending his orders from NVIDIA.
Yeah, I'm waiting for Blackwell to come out.
That's the next generation of NVIDIA chips.
And this is a concern among some investors and analysts because customers were saying, “Look, the Hopper chip is here.”
I don't plan on ordering any more hoppers as I want something better coming out later this year.
wait.
Is that a concern for NVIDIA?
Will it cost some money?
Or will it deliver further positive earnings growth later this year?
Blackwell promises to reduce costs by 25 times and power usage by 25 times.
This is powerful, and what's more, NVIDIA is moving beyond just chips to offer entire packaged AI solutions to increase data center capex spending.
They will not stop here and will continue to grow.
By the way, Blackwell is also going to be more expensive, but Kevin in this print is the headline wrapper, but that's also what it's made of.
So it's already up 90% this year.
I mean, expectations are just red hot.
So you're obviously setting yourself up for the possibility of disappointment, but I don't see that disappointment coming.
I think they're going to look to Blackwell's sales projections to guide their future direction, with deliveries scheduled for the second half of this year.
And I think it could go even higher if we start to focus on data center spending and grow in that market as well.
This is a tough one for me to say because I'm a value-oriented investor and their stock is trading at a fairly high multiple right now.
But considering the revenue projections, it's not that expensive.
Always nice to see you, Kevin.
Thank you for visiting us.
appreciate.
