NVIDIA Earnings Preview: Data Center Business, Supply Constraints In Focus – Investing.com

NVIDIA Earnings Preview: Data Center Business, Supply Constraints In Focus – Investing.com

Reports Q1 2022 results on Wednesday, May 26, after the close

Revenue expectation: $5.39 billion

EPS expectation: $3.28

The strong rebound in NVIDIA (NASDAQ:) shares from the March dip suggests that one of the largest U.S. chipmakers is successfully navigating the supply constraints which are choking growth in the overall industry.

If that's the case, the company will have good numbers to share with investors when it reports its latest earnings on Wednesday.

The industry-wide chip shortage has caused prices to rise for some products, while creating delays in filling orders for others. Auto makers are the most affected, as the acute supply shortage of chips they use in their vehicles have forced some to idle their factories.

Behind this sudden shift—from a robust growth scenario to supply constraints—is the pandemic-fueled demand for everything, including cell phones, laptops, cloud computing and gaming consoles.

California-based NVIDIA is a provider of the key components required for all the sector's large, high-growth technologies, including cloud-computing, artificial intelligence, robotic automation, mobile computing and the internet of things.

NVIDIA outsources its production to Taiwan Semiconductor Manufacturing (NYSE:) and Samsung Electronics (OTC:), which are struggling to fulfill orders. NVDA's Chief Executive Officer, Jensen Huang, told investors in