Nvidia earnings: A return to revenue growth expected after a tough year
By Wallace Witkowski
Published: Feb 11, 2020 11:21 a.m. ET
Expect easy comparisons to last year’s challenged quarters
After more than a year of quarterly revenue declines, Nvidia Corp. is finally expected to return to growth just before potentially announcing its next round of new products.
Nvidia NVDA, +1.84% is scheduled to report earnings after the close of markets on Thursday, and revenue is expected to increase for the first time in more than a year. Nvidia’s largest segment, gaming, and the business that has seemed most important to investors in recent years, data-center chips, are expected to drive the growth.
Data-center sales have been one of the most widely watched sectors in the chip industry this earnings season, after a decline in infrastructure sales in 2019 led to doubts about the cloud boom. Earlier in earnings season, Intel Corp. INTC, +1.64% reported a surprise jump in its data-center sales, while Advanced Micro Devices Inc. AMD, +3.40% reported that data-center sales were strong even though those results were masked by being lumped together with poor console sales.
Read: The problem with AMD’s data-center business
Reporting after those two rivals means the bar has been raised for Nvidia. Instinet analyst David Wong, who has a hold rating and a $147 price target on Nvidia, expects data-center sales growth to be strong, but only against the “easy” comparisons of last year’s disappointment.
continues at marketwatch.com |
