Nvidia $NVDA (NVDA) stock advanced by more than 3% ahead of the AI chip giant’s scheduled release of its fiscal fourth-quarter earnings after the close today. The shares of chip designers Broadcom $AVGO (AVGO) and Micron $MU (MU) also gained.
The company is expected to report revenue of $38.1 billion, according to analysts’ estimates compiled by FactSet (FDS). Net income is estimated to be $19.6 billion, or 85 cents a share, for the period ended in January.
Nvidia set its fiscal fourth quarter revenue guidance at $37.5 billion, plus or minus 2%, during its last report. FactSet analysts are expecting Nvidia to set fiscal first-quarter guidance at $42 billion.
After Chinese AI startup DeepSeek spooked investors in January, Nvidia’s stock plunged 17%, wiping out nearly $600 billion in value — a record loss for a U.S. company. In December, the Hangzhou-based AI startup released DeepSeek-V3, a model it said cost just $5.6 million to train and develop on Nvidia’s reduced-capability H800 chips.
Earlier this month, however, JPMorgan $JPM U.S. Equity Research (JPM) analysts said in a report that DeepSeek is likely to have a positive impact on Nvidia. DeepSeek’s demonstration of cost-efficiency and AI innovation will lead to “strong demand” for higher-performance graphics processing units, or GPUs, the analysts said. So Nvidia’s leadership in advanced AI chips “should enable them to unlock new use-cases.”
Nvidia’s stock experienced an extended rally last week and has recovered about 90% of the value lost during the sell-off.
In a note on Friday, Jefferies (JEF) analysts noted Nvidia’s stock rally but said it “has been relatively range bound” since November due to fears from the broader market over “a slower ramp in Blackwell shipments.”
Despite concerns over supply chain issues for Blackwell, Jefferies analysts said they “believe” Nvidia will deliver a beat and a raise, although “the magnitude is likely to be smaller than the typical $2-3B range.”
“We continue to like NVDA during product ramps,” Jefferies analysts said, adding that it expects “the beats to reaccelerate” in the second half of the year as Blackwell continues to expand.