Key Takeaways

• Nvidia will report third-quarter results after the market closes on Wednesday.

• Analysts expect the chipmaker to deliver revenue growth driven by demand for artificial intelligence infrastructure, with record data center sales.

• Investors will also be watching for updates on Nvidia's Blackwell AI chip shipments.

Nvidia (NVDA) will report third-quarter results after the bell Wednesday, with the world’s most valuable company projected to report revenue growth driven by demand for artificial intelligence (AI) infrastructure.

Wall Street analysts expect the chipmaker’s revenue to grow 84% year-over-year to $33.28 billion and net income to jump to $17.45 billion or 70 cents per share, up from $9.24 billion or 37 cents per share a year earlier, according to Visible Alpha. Nvidia underwent a 10-for-1 stock split in June.

Key Metric: Data Center Revenue

Nvidia’s data center revenue hit a record $26.3 billion in the second quarter, and analysts are calling for it to climb to a fresh high of $29.53 billion in the third quarter. In August, CEO Jensen Huang said, “global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”

Morgan Stanley raised its price target for Nvidia stock to $160 from $150 earlier this week and maintained its “overweight” rating, citing the strength of its data center growth.

"We expect NVDA's Data Center business to drive much of the growth over the next 5 years, as enthusiasm for generative AI has created a strong environment for AI/[machine learning] hardware solutions," the analysts said.

Business Spotlight: Blackwell Supply

Investors will also be watching for updates on shipments of Nvidia's Blackwell AI chip, which Huang has called "a complete game changer for the industry."

However, Morgan Stanley analysts warned supply constraints could limit the upside of Nvidia's near-term outlook, adding "we think the bigger upward revisions happen later in the year." Nvidia has said it expects to ship several billion dollars worth of Blackwell revenue during the January quarter as production ramps up.

Shares of Nvidia have nearly tripled in value since the start of the year, at $141.98 as of Friday's close.