NVIDIA (NVDA) is set to report Q3 (Oct) results today after the close with a conference call at 5:00pm ET.

The current S&P CapitalIQ consensus is for adjusted EPS to drop 40% yr/yr to $0.70 and revs to fall 18% to $5.82 bln. NVDA expects Q3 revs of $5.78-6.02 bln.

Competition:

AMD's Data Center segment registered a 45% jump yr/yr in SepQ. That marked ten straight months of record server processor sales.
INTC posted a surprise bottom-line beat in SepQ.

Automotive:

Expectations should be fairly high for NVDA's Automotive sales in Q3, especially after many others reported robust demand from this end market in recent months.

Gaming:

NVDA expects Gaming revs to decline sequentially in Q3.

Data Centers:

NVDA's Data Center segment should see some positivity. This expectation is due to the upbeat Data Center growth from AMD in their September Quarter.

The New Growth:

Shares of INTC rallied late last month on the back of plans to cut $3 bln in costs in FY23. AMD shares a similar story, taking several near-term management actions in SepQ, including controlling operating expenses and headcount growth.

Therefore, investors will likely look for NVDA's plans to navigate the rising rate and inflationary environment.

Buffett Indicator?

Berkshire Hathaway recently announced a $4bn stake in Taiwan Semi (TSM). This indicates that the Oracle of Omaha at least sees some potential value in the sector. In their September Quarter, Taiwan Semi (TSM) noted that data center and automotive markets have been holding up relatively well but cautioned that there could be adjustments down the road.

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TECHS:

NVDA has yet to reclaim all their losses after a soft Q2 (Jul) earnings in late August. That said, the stock has been on a pretty impressive run since October 14. Shares have risen around 47%.

NVDA's run has been a front run of price action that is not dissimilar to the other chip names. Many of the semiconductor cohorts have been able to report “better than feared” results and have seen a rally on the back of the report. NVDA’s run of more than 50% on the recent highs makes me cautious and willing to sit this one out until the dust settles.

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G-Force (NVDA Earnings)

The current S&P CapitalIQ consensus is for adjusted EPS to drop 40% yr/yr to $0.70 and revs to fall 18% to $5.82 bln. NVDA expects Q3 revs of $5.78-6.02 bln.