Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting earnings tomorrow after the bell. Here’s what you need to know.

Nvidia beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $30.04 billion, up 122% year on year. It was an exceptional quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.

Is Nvidia a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Nvidia’s revenue to grow 82.7% year on year to $33.1 billion, slowing from the 206% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nvidia has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 8.1% on average.

Looking at Nvidia’s peers in the processors and graphics chips segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Qualcomm delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 3.1%, and Qorvo reported a revenue decline of 5.2%, topping estimates by 1.8%. Qualcomm’s stock price was unchanged after the results, while Qorvo was down 27.4%.

Read our full analysis of Qualcomm’s results here and Qorvo’s results here.

Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the processors and graphics chips stocks have shown solid performance, the group has generally underpeformed, with share prices down 7.5% on average over the last month. Nvidia is down 2.2% during the same time and is heading into earnings with an average analyst price target of $160.38 (compared to the current share price of $140.60).

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