Nvidia earnings: KeyBanc Capital sees few signs of demand pause

Nvidia (NVDA) shares are climbing as KeyBanc Capital Markets sees limited signs of a demand pause for the company. This boost is ahead of Nvidia's first quarter earnings next week, where it is expected to top Wall Street estimates.

Yahoo Finance's Julie Hyman and Josh Lipton break down the stock valuation and key tailwinds that may give the company a boost in its earnings.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Melanie Riehl

Video Transcript

Time.

Now for some of the day, trending tickers looking at shares of NVIDIA, the stock getting a boost as key bank capital markets sees limited signs of a demand pause for that company.

This comes ahead of Nvidia's first quarter results next week.

So Nvidia's Q one earnings, they are on deck May 22nd and the previews uh from the street are coming in.

Julie including our man John Vin from Key Bank out with a note says he expects Q one results and Q two guides to come in meaningfully above expectations sees that upside driven.

He says by improving supply of H 100 GP U lead times, he says they have normalized and strong demand.

He says for those China compliant chips as well, right?

And one of the concerns I guess that's been raised is that ahead of the introduction of the Blackwell GP us in the second half of the year that there might be that demand pause as people are waiting for the product to cut out, come out.

But as he says, there's all these other products that people are still buying and that are on back order.

The other thing that really stood out to me is he is looking out to 2025 and he says in 2025 that Blackwell and some of their other products could drive over $200 billion in data center revenues for for next year.

Now, just to put that in perspective last year, those data center revenues were $47.5 billion.

Therefore, that would represent a 321% gain in data center revenues alone.

That's not the whole company's revenues from 2023 to 2025 if he is correct.

Yeah.

And I think it dovetails with kind of his bottom line Julie where he says N via remains uniquely positioned to benefit from A I and machine learning data center growth within the industry.

He says we see limited competitive risks, they may be trying other companies, but he doesn't see it expect NVIDIA to continue to dominate one of the fastest growing workloads in cloud and enterprise.