NVIDIA (NVDA) will report Q4 (Jan) results today after the close.

The current S&P CapitalIQ consensus is for EPS of $1.22 and revs of $7.43 bln, representing about 49% growth yr/yr.

In the last quarter, NVDA guided to Q4 revs of $7.25-7.55 bln, non-GAAP gross margins of 67%, and non-GAAP operating expenses of $1.43 bln. 

The most recent story for NVDA was the decision to walk away from its deal to acquire Arm for $40 bln.

Advanced Micro (AMD) had strong quarter in Q4 with huge numbers like growing its data center sales close to 100% yr/yr and Computer & Graphics segment 32%.

• Since NVDA's technological advantage to AMD for many uses, particularly in data centers and gaming, it should be expected that they have pretty robust growth in each segment for Q4.

Automotive is expected to continue to be a laggard this quarter. Any positive comments by NVDA on auto sales recovering throughout FY23 (Jan) would ease some tensions.

Investors will also look for commentary around supply chain issues potentially easing.

TECHS:

Going into the print NVDA shares are down around 13% YTD.

NVDA also trades at a high multiple of 50x forward earnings, a premium relative to competitors AMD at 29x and INTC at 14x. This rich valuation builds in little room for error. Bottom line, NVDA can reignite its shares with upbeat guidance and positive remarks surrounding its decision to forgo pursuing its Arm acquisition.

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