Nvidia's upcoming earnings report is highly anticipated due to its weight in major indices like the Nasdaq 100 and S&P 500. Analysts forecast a 66% revenue growth to $43.28 billion for Q1 2025, although this is lower than the previous year's figure. Concerns arise over export restrictions on Nvidia's H20 chip, which may result in a $5.5 billion write-down and a $15 billion long-term revenue impact. Investor sentiment seems cautious, as guidance for Q2 may not meet lowered consensus estimates, but there's optimism for the latter half of the year.
On Wednesday May 28, after the market close, the innovative chip giant will report its fiscal first quarter results for 2025 and expectations are once again high.
The longer-term impact of those restrictions could be worse. David O'Connor, of BNP Paribas, wrote in a note Tuesday "This inventory write-off implies a $15 billion H20 revenue hit on a rolling 12-month basis."
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