Key Metrics To Watch: Nvidia Earnings

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The Q3 earnings cycle continues to roll along, with this week’s reporting docket highlighted by none other than AI poster-child NVIDIA (NVDA - Free Report). The release will wrap up the reporting cycle for the broader Mag 7 group as well, whose growth has continued to remain strong as a whole.
Given the importance of the release, let’s take a look at a few key metrics to keep an eye out for.
Data Center
To little surprise, Data Center results from NVIDIA will be the major focus, which have been the primary driving force behind its positivity over recent years. Unrelenting demand has led to huge growth, with everybody wanting the AI GPUs.
Below is a chart illustrating the company’s Data Center sales on a quarterly basis. Our consensus estimate for Data Center sales for the quarter to be reported stands at $49.1 billion, suggesting 60% YoY growth.

Image Source: Zacks Investment Research
Gaming
NVIDIA’s Gaming results, although now a much smaller part of its business, are also worth investors’ attention due to its dominant position in the gaming industry. Its cutting-edge gaming GPUs are also getting a boost thanks to its advancements in AI capabilities, a key aspect to keep in mind as we increasingly wade into the AI era.
Our consensus estimate for Gaming sales stands at $4.6 billion, 40% higher than the year-ago figure of $3.3 billion. Below is a chart illustrating the company’s Gaming sales on a quarterly basis.

Image Source: Zacks Investment Research
Bottom Line
NVIDIA’s release will wrap up the reporting cycle for the Mag 7 group, whose results were overall positive and constructive. It’s more than reasonable to expect the AI favorite to spend the bulk of its time discussing the AI outlook, primarily focused on the Data Center.
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