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Nvidia will report earnings on Wednesday, with investors focused on Blackwell demand impact from DeepSeek.
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DeepSeek's AI model raised concerns about reduced GPU sales when it debuted last month.
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Most analysts expect Nvidia to beat earnings estimates and potentially raise guidance.
Nvidia has a high bar to clear when it reports fourth-quarter earnings after the closing bell on Wednesday.
As the world's second-largest company, Nvidia will have to prove to investors that demand for its next-generation Blackwell chip continues to be strong, and that the company won't be negatively impacted by the jarring debut of China's DeepSeek AI model.
Last month, DeepSeek raised concerns among investors that data centers will not need as much computing power as they had initially expected, which would result in fewer GPU sales for Nvidia.
However, Nvidia CEO Jensen Huang has argued that DeepSeek's efficiency gains will only accelerate the speed at which AI is adopted and advanced.
According to data from Bloomberg, the average analyst estimate suggests Nvidia will grow its revenue by 73% to $38.2 billion in the quarter, compared to year-ago revenue of about $20 billion.
Here's what Wall Street is saying about Nvidia's upcoming earnings report.
Analysts at Mizuho said that while they expect Nvidia to report an "in-line" earnings report, they also expect some "growing pains."
"Our checks indicate that while JanQ DC is expected in-line, AprilQ could be more flattish as near-term ramps remain modest given GB200 power/cooling requirements," Mizuho said in a note last week.
DC refers to Nvidia's data center revenue, which encompasses its GPU chip sales.
For Mizuho, the focus is on the second half of the year, as it expects a "strong" Blackwell ramp to make up for any lost revenues in the first half of the year.
"We continue to see NVDA driving strong industry leadership with its CUDA ecosystem, on top of its integrated HW platform where it has strong customer relationships," Mizuho said, adding that it expects key customers Microsoft, Amazon, and Alphabet to turbocharger their Blackwell GPU purchases later this year.
Mizuho rates Nvidia at "Outperform" with a $175 price target.
Analysts at Wedbush said the big question going into earnings is whether it will be another "$2 billion beat and $2 billion raise" quarter. The firm thinks they can pull it off.
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