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Nvidia recently said it is slowing down the pace of hiring.
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nvidia
Earnings reports after Wednesday’s close. While some analysts have expressed concerns about how weakness in the technology sector will affect the semiconductor maker, one analyst believes there may be a positive side.
demand for data centers It’s remained flexible, and could be a life raft for chip companies like Nvidia (stock ticker:
NVDA
) which is looking to bolster its bottom line earnings, Citi analyst Atif Malik wrote in a research note.
“We hear that the data center continues to be an area of relative strength in the semi-finals, as demand for consumer PCs and smartphones continues to decline,” he wrote.
He said Nvidia’s data segment makes up nearly 50% of sales, so any strength in that segment would be a boon to the company. Malik expects Nvidia management to issue a positive comment during its earnings report, along with earnings that are in line with expectations. He added that the company may report a profit in the July quarter, driven by data center strength.
Wall Street expects Nvidia to report adjusted earnings of $1.30 per share when it releases its quarterly results on Wednesday. Analysts estimate revenue to be $8.12 billion, of which $3.6 billion comes from the data center segment, according to FactSet.
Explode, Explode
(SNAP) Monday lowered its financial guidance The second quarter of the fiscal year, indicating a difficult business environment. The warning set off alarm bells that reverberated throughout the tech sector, leading to sales across the sector that were affected by few, including Nvidia. Investors will eagerly await the semiconductor company’s results to see if Snap’s economic challenges are as widespread as the market believes.
Over the weekend, Nvidia said it was slowing down on Recruitment paceto join the many tech companies that have decided to cut spending amid rising costs.
Nvidia stock rose 1.6% to $164.16 on Wednesday. Shares have lost 44 percent this year, weighed down by concerns about slowing consumer demand and general pessimism in the sector.
Write to Sabrina Escobar at [email protected]
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