Shares of Nvidia (NASDAQ: NVDA) have taken off impressively in 2023 with gains of 93% so far, driven mainly by the artificial intelligence (AI) hype train that has led Wall Street to overlook the recent challenges faced by the company.
Weak sales of personal computers (PCs) and a pullback in data center spending have weighed heavily on the semiconductor giant's revenue and earnings in fiscal 2023 (ended on Jan. 29). Its annual revenue was flat at $27 billion, while adjusted earnings fell 25% over the prior year to $3.34 per share. A turnaround is expected in the current fiscal year, with revenue expected to increase 11% to $30 billion. Analysts expect a 36% spike in Nvidia's earnings to $4.53 per share.
However, it may be too early to be optimistic about a turnaround at Nvidia as the bears might come out in full force when the company releases fiscal 2024 first-quarter results later this month. Let's see why.
Source Fool.com