Revenue expectations
Wall Street expects Nvidia to post around $65.7 billion in revenue for the quarter. This would mark growth of about 67% compared to last year. Earnings per share are estimated at $1.53, up more than 70% year over year. The data center business remains the main growth driver. Analysts expect nearly $60 billion in revenue from this segment alone. Gaming revenue is expected to be about $4 billion, which is steady but much smaller than data center sales. Large technology companies such as Microsoft, Google, Meta, and Amazon are increasing spending on AI infrastructure. They are building more servers and expanding AI services. Nvidia supplies many of the chips used in these systems.
Margins
Investors will also watch gross margins. Estimates suggest margins may be close to 75%. If margins stay strong, it means Nvidia is still able to charge high prices for its products. If margins fall, it may raise concerns about higher costs or growing competition. Markets expect about $75 billion in revenue for Q1 of fiscal 2027. If Nvidia forecasts higher numbers, analysts may raise their full-year estimates. If guidance is lower than expected, the stock could see sharp swings. Traders in the options market are preparing for a possible 5–6% move in the share price after results.
Competition and global risks
Competition in AI chips is rising. Companies such as Advanced Micro Devices and Broadcom are also investing heavily in AI products. Investors want to see if Nvidia can maintain its lead. China remains another key factor. US export rules have limited some advanced chip sales. Although certain shipments have resumed, demand from China may remain uncertain. Any update from CEO Jensen Huang on this issue could affect investor confidence.
