Investors who want a boring backdrop for Nvidia’s benefits this week can simply forget it. The main source of the Hoopla is the emerging Chinese startup Deepseek, which rocked the club’s stock at the end of last month with allegations of more efficient AI models. Nvidia’s Blackwell’s Blackwell platform has also faced deployment constraints. In other words, CEO Jensen Huang has a lot to talk about Wednesday evening when the dominant manufacturer of artificial intelligence fleas offers tax results in the fourth quarter. For the period from November to January, Wall Street expects Nvidia to declare a profit per share of 84 cents on revenues of $ 38.05 billion, which implies growth from one year to the other from 61.5% and 72%, respectively. Nvidia is also planned for the first time to provide an overview of figures for the year 2026. The estimate of the consensus for income from the company’s first tax trimester, which ends in April, is around $ 42 billion . The initial panic of the market on Deepseek has calmed down, and Nvidia’s shares have erased most of their 18% tumbled in the first week of the spin -offs, negotiating at around $ 135 each Monday. The Stock Fell from $ 142.62 on Jan. 24 Before Closing as Low As $ 116.66 on Feb. 3. Still, The Overall Tenor of the AI ​​Conversation Feels Different, and Questions Circling Monday About Microsoft’s Data-Center Lease Plans Underscore The UNEASINESS THAT AMONG Some Some Investors of IA. In about 48 hours, however, Wall Street analysts will finally have the opportunity to ask Huang, widely considered as a visionary of AI, questions about Deepseek’s implications for Nvidia’s affairs. The reason why Nvidia’s actions plunged after the arrival of Deepseek was the concern that his allegations of effective AI models and at a lower cost – but probably not as low as initially expected – will greatly reduce the number of advanced chips required In the future to train and execute the Applications on a daily basis, a process called inference. The counter argument was AI models which are cheaper to develop and deploy should make AI more accessible and stimulate adoption by companies and consumers – and, in the end, require much more power calculation in the total. NVDA 1Y Mountain NVIDIA’s Stock Performance in the past 12 months. Huang’s only public comments on Deepseek were revealed last week in a conversation recorded with DDN CEO, Alex Bouzari, who was broadcast during a virtual event organized by this data storage company. The comments can predict the arguments that Huang makes the call on Wednesday, so it is worth examining them more closely. In the DDN interview, Huang suggested that the stock market reaction to Deepseek was based on an incomplete understanding of the formation of AI models, a calculation process in which the models are fed by massive data – such as the text, Photos and video – To learn models on the data set. The models are based on these models learned to generate outings during inference. Huang said that many investors had not recognized that training is a process in several stages, with an initial phase of “pre-training” followed by “post-training”, where the model is refined and optimized before be deployed in inference. Post-training is “where you learn to solve problems,” said Huang. “There are a whole bunch of learning paradigms different associated with post-training, and in this paradigm, technology has evolved enormously in the past five years and intensive computer needs”, He added. With some of Deepseek’s innovations, “people thought”, oh my god, pre-training is much less. “They forgot that post-training is really quite intense,” he said. Huang also said that the high -end model of Deepseek, known as R1, is considered a reasoning model, which breaks down the user into smaller pieces and spends more time “think” before generating a answer. In general, these types of models are capable of managing more advanced tasks than that which propelled the Openai Chatppt when it was launched at the end of 2022 and sparked the Boom of the AI. Openai, for its part, launched its reasoning model at the end of last year and published a new version in January. “Reasoning is a fairly with a large intensity of calculation,” said Huang. “And so, I think the market responded to R1 as an” Oh my God, I have finished. … we no longer need to do calculation. “It’s exactly the opposite.” The launch of Blackwell by Nvidia will also focus on Wednesday evening – and with regard to the short -term impact on financial services, it has much more weight than Deepseek. Advice on income from the fourth tax quarter of Nvidia of around 37.5 billion dollars, which is a little lower than the current consensus, was at least “several billion dollars in blackwell sales. From Nvidia, Blackwell, went into full production in the fall – and in early January, Huang told CES lounge in Las Vegas that “each Cloud service provider “had operational Blackwell -based” systems “. However, the high -end Blackwell product manufacturing and installation process – a full version of the server rack known as GB200 NVL72 – Faced To certain challenges, according to analysts. weeks. But that does not mean that the quarterly figures of Nvidia, or the advice for its first quarter of the 2026 financial year, are completely overcoming. In a note last week, analysts of Keybanc Capital Markets said that despite the Rack Low GB 200 expeditions, they expect a different and simpler blackwell product called HGX B200, as well as H20 chip shipments Chinese customers, to “drive up”. In fact, Keybanc said that the emergence of Deepseek has contributed to triggering an “increase in demand” of the H20, which are muffled versions of hopping fleas intended to comply with American commercial restrictions on advanced exports of chips ‘Ia to China. Although there is an increasing belief that the United States will tighten export controls in response to Deepseek, in the short term, China seems to be a source of strength. The transition from the hopper to Blackwell “was a little more jumped than expected,” Melius’ research analysts wrote to customers on Monday. “However, the sales prospects always seem excellent by F2Q26 – and there are already a lot of chatting on the Blackwell Ultra (GB300), likely to be revealed during its GPU Technology (GTC) conference in March and on an expedition by ( end of calendar year). “GTC is the conference and the product show and the Tell. Have everything together, and Melius suggested that NVIDIA’s directives for the April quarter could not exceed consensus in the same way that investors are expecting it in recent years. But it will not take long before “a very large bump” of income thanks to Blackwell materializes, argued the analysts. NVIDIA investors are not able to enter Wednesday evening. “The district feels badly installed”, as Jim Cramer wrote in his Sunday column. Admittedly, the Deepseek saga in recent weeks has tested Jim resolution, which he recognized during our monthly meeting last week. However, he declared that his faith in the management of the company by Huang remains strong, and that is why he appointed Nvidia an “owner, do not negotiate it” to start. The good news is that with so many questions concerning the report on the profits of Nvidia, investors will finally obtain answers directly from Huang and the head of finance respected Colette Kress. We were waiting for this. (Jim Cramer’s Charitable Trust is Long NVDA, MSFT. See here for a full list of actions.) As abonted at CNBC Investing Club with Jim Cramer, you will receive a commercial alert before Jim is doing a business. Jim is waiting for 45 minutes after sending a commercial alert before buying or selling a stock in the portfolio of his charitable trust. If Jim spoke of a stock on CNBC TV, he waits 72 hours after issuing the commercial alert before running the trade. The above information of investment clubs is subject to our terms and conditions and our privacy policies, as well as our warning. No obligation or fiduciary duty exists, or is created, due to your reception of the information provided in relation to the investment club. No specific result or profit is guaranteed.
Jensen Huang, co-founder and CEO of Nvidia Corp., holds the ACC accelerator chips of the company for data centers while he speaks during the Nvidia Ai Summit Japan in Tokyo on November 13, 2024.
Akio Kon | Bloomberg | Getty images
Investors want a boring backdrop to Nvidia This week’s earnings can simply forget it.