AI giant Nvidia (NVDA) is set to report second-quarter earnings after the bell on Wednesday, in a report that has been touted as pivotal for the artificial intelligence trade and the tech sector in general.
Yahoo Finance’s Dan Howley gives a preview of what to expect:
Nvidia’s announcement — the most anticipated earnings of the quarter — comes as its stock has soared more than 163% year-to-date and 60% in the past six months. Shares of rival AMD (AMD) have risen 9% year-to-date and fallen about 14% in the past six months.
Shares of Intel (INTC) are down 57% year-to-date and are down 53% in the past six months as the company continues to grapple with the massive restructuring it is undergoing.
For the quarter, Nvidia is expected to report adjusted earnings of $0.65 per share on revenue of $28.7 billion. That would represent a 139% jump in EPS and a 113% increase in revenue compared to the year-ago period, when Nvidia saw EPS of $0.27 and revenue of $13.5 billion.
Nvidia is the global leader in AI chip design and software, controlling between 80% and 95% of the market, according to Reuters. And it’s expected to maintain that lead as it begins rolling out its next-generation Blackwell chips.
While Information reports a possible delay in Blackwell’s shipments, analysts at firms including Goldman Sachs, KeyBanc and Loop Capital don’t think this is a cause for concern for Nvidia in the near term.
“Our work suggests that Blackwell is in fact delayed, as we first wrote on [Aug. 8]it could be more like 120 days instead of 90 days…although it might not matter that much [1)] TSMC’s hopper yields continue to improve and [2)] “The amount of increased Hopper production in the fall could exceed the amount of Blackwell lost to the pushout,” Ananda Baruah, managing director of Loop Capital, said in an investor note.
For the quarter, Nvidia’s all-important data center business is expected to generate $24 billion in revenue, up 142% from the $10.3 billion the segment saw in the year-ago quarter. Wall Street is expecting Nvidia to not only beat its Q2 expectations but also raise its Q3 forecast.
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