Earnings Outlook: Nvidia earnings: Data-center weakness continues to create fear

Nvidia Corp. is about to be a test case for a potential cloud slowdown, after earlier earnings reports from chip makers indicated an industry-wide slump in data-center sales.

When Nvidia NVDA, +2.27% reports fiscal third-quarter earnings after the market closes Thursday, many analysts are concerned the chip maker’s server-chip sales will suffer the same weakness cited by Intel Corp.INTC, +0.92% in the chip giant’s late-April earnings report. Intel said that “data-center inventory and capacity digestion” had been worse than the company had forecast in January, with demand from China falling off.

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