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Artificial intelligence giant Nvidia (NVDA) will report second-quarter earnings after the close of trading on Wednesday. The report has been described as critical for AI trading and the tech sector as a whole.
Dan Hawley from Yahoo Finance Contains a preview of what to expect:
Nvidia’s announcement — the most anticipated results of the quarter — comes as the stock has risen more than 163% year-to-date and 60% over the past six months. Rival AMD’s stock is up 9% year-to-date and down about 14% over the past six months.
Intel (INTC) shares have collapsed 57% since the beginning of the year and are down 53% over the past six months as the company continues to struggle amid its massive turnaround efforts.
NVIDIA is expected to report adjusted earnings per share of $0.65 on revenue of $28.7 billion in the fourth quarter of last year. That would represent a 139% increase in earnings per share and a 113% increase in revenue compared to the same period last year, when NVIDIA reported earnings per share of $0.27 on revenue of $13.5 billion.
Nvidia is the world's leading AI chip and software designer, controlling between 80% and 95% of the market, According to ReutersIt is expected to continue to maintain this lead as the next generation of Blackwell chips rolls out.
While Information Although Nvidia has announced a potential delay in Blackwell shipments, analysts at firms including Goldman Sachs, Key Bank, and Loop Capital don't see this as a major concern for the company in the near term.
Our work suggests that while Blackwell is in fact late, as we first wrote about in [Aug. 8]It might be more like 120 days versus 90 days… although that might not matter much. [1)] TSMC's Hopper Yield Continues to Improve [2)] “The increase in Hopper production during the fall could outweigh the amount of Blackwell production lost due to the push,” Ananda Baruah, managing director of Loop Capital, said in a note to investors.
Nvidia’s critical data center business is expected to generate $24 billion in revenue during the quarter, up 142% from the $10.3 billion the sector saw in the same quarter last year. Wall Street expects Nvidia to not only beat its second-quarter forecast but also raise its outlook for the third quarter.
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