What To Expect From Nvidia And Its Semiconductor Rivals In This Week's Earnings Setup

With corporate heavyweights investing millions of dollars in artificial intelligence (AI), semiconductor stocks have been in focus as the key beneficiaries of this trend.

Semiconductor companies are facing sluggishness in the industrial and auto end markets and communications infrastructure, while demand for AI infrastructure remains “extremely robust, led by strong capex outlooks from major U.S. hyperscalers,” according to KeyBanc Capital Markets.

The Semiconductor Off-Season Earnings: The three companies scheduled to report earnings this week are Nvidia Corp NVDA, Analog Devices, Inc. ADI and indie Semiconductor Inc INDI.

The Semiconductor Analyst: John Vinh reiterated an Overweight rating on both Analog Devices and indie Semiconductor, while keeping the price targets unchanged at $220 and $12, respectively.

Check out other analyst stock ratings.

Analog Devices

“We expect ADI to report in-line results and in-line to slightly lower guidance, due to softer demand trends across industrial and auto, and continuous inventory destocking, partially offset by price increases in 1Q,” Vinh wrote in the note.

Expectations for the latest quarter:

• Revenue: $2.51 billion versus consensus estimates of $2.50 billion
• Earnings: $1.72 per share versus consensus estimates of $1.71 per share

indie Semiconductor

The company could also post in-line results and in-line to slightly lower guidance “on incremental weakness in auto across ICE and EV, with modest pricing pressure as a result of TXN’s price cut,” the analyst stated.

Expectations for the latest quarter:

• Revenue: $73 million, in-line with the consensus estimates
• Earnings: Breakeven, versus consensus estimates of a loss of 1 cent per share

Nvidia

The analyst said he expected Nvidia to post “strong beat and raise results, supported by strength in demand across all regions outside of China, driven mostly by demand for H100 GPUs.”

Expectations for the latest quarter:

• Revenue: $21.0 billion versus consensus estimates of $20.2 billion
• Earnings: $4.72 per share, versus consensus estimates of $4.51 per share

NVDA, ADI, INDI Price Action: Shares of Nvidia, Analog Devices and indie Semiconductor declined by 5.92% to $683.40, by 0.17% to $187.93, and by 2.11% to $7.21, respectively, at the time of publication on Tuesday.

Read Next: What's Going On With Intel Stock Tuesday?

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