After the closing bell on Wednesday, Nvidia NVDA will report its Q 3 earnings, a week after the company announced a slew of new technologies during its GTC 2021 conference, and as it faces new scrutiny from the UK's antitrust regulators.
Here is what analysts expect from the company, as compiled by Bloomberg, compared to how it performed in the same quarter last year.
Earnings per share were not expected to be $1.11 in Q 3 last year compared to $0.73 in Q 3 last year.
It would be an understatement to say that Nvidia had an incredible run in 2021. The stock of the company is up 125% year-to-date, and it is just a matter of fact that it has just launched new hardware and software related to its metaverse platform, called Omniverse, its self-driving vehicle initiatives, and its artificial intelligence work.
Nvidia, like other chipmakers, has also been stung by the chip shortage. The consumer graphics cards from the company are incredibly scarce thanks to a run on them by both criptominers and resellers using bots to grab as many cards as possible.
Cards are selling for hundreds of dollars above their manufacturer's suggested retail price. Cards that should cost $599 are going to cost well over $1,000, and finding any near their original prices is a pointless endeavor.
Nvidia still makes the majority of its cash on its games business, but the data center arm of the company has become increasingly important to the company s future. The firm is a leader in large-scale artificial intelligence systems, thanks to the power of its cards parallel processing, and it is going to roll out its own CPU to make sure its data centers don't have to use its competitors processors.
And not everything is going well for Nvidia. The $40 billion plan to purchase chip designer ARM has hit a regulatory wall in the U.K. where it is undergoing an in-depth review. It needs to get through regulators in both the U.S. and China before it can be finalized. If it gets approved, it's going to be approved.
According to Yahoo Finance Live, Nvidia CEO Jensen Huang said that the company is prepared to move forward with or without ARM. Huang said that we would go forward very nicely as we were going forward today. We support all CPUs. The CPU is the first chip in the system and we love it because of the flourishing of CPUs. It starts the operating system. There are opportunities for accelerated computing wherever there are CPUs. Nvidia CEO Huang said that AI is the'most powerful technology force the world has known.
None of the Nvidia CEO said we don't have any magic bullets to deal with chip shortage.
No Nvidia is on the top of the world, but its rivals are gaining steam.
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