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Nvidia (NVDA) is expected to announce second-quarter earnings this week, and reported delays of its highly-anticipated new artificial intelligence platform don’t worry analysts — some of who are expecting its revenue to more than double.
The chipmaker is expected to report revenue of $28.7 billion for the quarter ending on July 30 — more than double its revenue of $13.5 billion a year ago, according to analysts’ estimates compiled by FactSet.
Daniel Newman, chief executive of The Futurum Group, told Quartz he expects a “strong beat,” but that blowout quarter-on-quarter growth is starting to moderate despite robust demand from cloud companies investing in Nvidia’s (NVDA) tech to remain competitive.
However, Nvidia’s shares fell earlier this month after a report that its latest Blackwell AI platform is delayed due to design flaws, possibly pushing deliveries back by at least three months. During the company’s first-quarter earnings call, Nvidia chief executive Jensen Huang said Blackwell would start shipping in the second quarter, ramp up in the third quarter, and be with customers in the fourth quarter. He added that the chipmaker would see revenue from Blackwell this year.
Blackwell delays won’t “meaningfully impact” Nvidia’s second-quarter earnings, Newman said, but it could eventually have a small impact on Blackwell revenue as the rampup starts in the next quarters. Newman expects Hopper demand to fill the gap in the short-term “because the people that want Blackwell will still want it,” he said.
Blayne Curtis, head of U.S. semis at Jeffries, wrote in a note that Blackwell delays are not “a meaningful blow” to Nvidia’s competitive position, nor to 2025.
But while the market is focused on the peak of demand for artificial intelligence chips in regards to Nvidia, David Wagner, portfolio manager and head of equity at Aptus Capital Advisors, told Quartz the focus should be on the supply side and when Nvidia will start getting a tangible revenue source from Blackwell.
While Wagner also said he isn’t worried about the impacts of the delays on Nvidia’s financial results for the second and upcoming quarters considering there is more demand than supply, he’s focused on when Blackwell supply will meet demand and how it will grow.
Nvidia’s will release its earnings after market close on Wednesday.
