Nvidia is set to announce its Q2 earnings today at 4:20 PM ET. Analysts are expecting the company to report earnings per share (EPS) of $0.65, which would be a 140% increase from the same quarter last year. Revenue is expected to reach $28.9 billion, up 114% year-over-year. However, investors on the buy-side are expecting even higher revenue, between $33 billion and $35 billion.
In the past five quarters, Nvidia has consistently exceeded earnings expectations, beating them by an average of 18%, with individual quarters ranging from a 10% to a 32% beat. The Street’s unofficial “whisper number” for revenue is around $30 billion, influenced by Nvidia’s history of surpassing its own revenue guidance by at least 8% over the last four quarters.
For Q2, the estimated revenue for Nvidia’s different segments is as follows: Data Center is expected to bring in $25.1 billion, which is a 143% increase from last year. Gaming is estimated at $2.6 billion, up 12% year-over-year. Professional Visualization is expected to reach $0.5 billion, a 19% increase. Automotive is projected to be $0.4 billion, up 38%, and OEM & Other is estimated at $0.1 billion, up 18%.
Looking ahead to Q3, Nvidia is forecasted to generate $31.7 billion in sales, which would be a 72% increase from last year, with an EPS of $0.71.
The main concern for investors is the potential impact of delays in Nvidia’s Blackwell GPU. During the earnings call, investors will closely listen for updates on how long demand will continue to exceed supply. Last quarter, Nvidia’s CEO Jensen Huang mentioned that this imbalance could last “well into next year.” Another concern is whether the costs associated with redoing the Blackwell GPU (RTO) will affect Nvidia’s profits and EPS in the short term.
If Nvidia can provide clear information to address worries about the GB200 GPU shipment schedules, it could improve investor sentiment for Nvidia and its supply chain over the next few months. Additionally, options traders are expecting a potential 9.8% stock price movement after the Q2 earnings, which would represent about $305 billion in market value—more than the market cap of 95% of S&P 500 companies.
Stay informed with our financial updates, stocks, bonds, commodities. Get global & political insights. Follow us & enable notifications for the latest updates.
One thought on “Nvidia Q2 Earnings Preview: Key Expectations and Investor Concerns Ahead of Report”