Investing.com - As NVIDIA Corporation (NASDAQ:NVDA) is expected to release its quarterly earnings report after the market closes on Wednesday, investors' attention will likely be drawn towards the company's data center offerings rather than mixed results in their gaming division. These products are crucial for powering advanced artificial intelligence applications that have captivated both consumers and investors.
Track Q1 earnings season results with InvestingPro.
Wall Street analysts predict that Nvidia will announce revenues of $6.5 billion for the April quarter, with adjusted earnings of 92 cents per share. For the current quarter, experts estimate revenues to reach around $7.2 billion.
Nvidia holds a prominent position as a manufacturer of chips utilized in various sectors such as video games, artificial intelligence, and cloud computing applications within PC and server hardware systems.
In recent news, KeyBanc Capital Markets analyst John Vinh reiterated his Overweight rating for Nvidia stock earlier this week while increasing his price target from $320 to $375. Vinh stated that "Nvidia remains uniquely positioned to benefit" from the expanding market for AI and machine learning technologies.
Vinh also acknowledged concerns about disappointing sales figures following the launch of RTX4070 gaming card on April 13th but believes that investors would look past these issues due to promising developments in other areas such as AI technology.
Nvidia's chips play an essential role in generative AI which has gained significant traction this year. This form of AI processes text, images, and videos through brute-force methods allowing it to create content autonomously. The surge in interest can be attributed back to OpenAI’s introduction of ChatGPT late last year.
Overall, Wall Street analysts maintain an optimistic outlook on Nvidia. Approximately 74% of them have issued Buy or equivalent ratings for the company's stock, as per FactSet data.
Nvidia's shares have experienced remarkable growth of over 100% this year alone and nearly 90% in the past twelve months.