Nvidia Corp. (NVDA), a dominant force in the chipmaking and artificial intelligence (AI) landscape, is poised to unveil its quarterly earnings on Wednesday after the market closes. The anticipation surrounding the announcement is palpable, with analysts expecting the company to scale new heights and reignite market momentum, which has recently cooled somewhat.
Analysts anticipate strong performance for the fiscal year 2025 second quarter, fueled by the sustained demand for Nvidia’s AI accelerators. The consensus forecast projects revenue of $28.68 billion and non-GAAP earnings per share of 64 cents. This represents significant growth compared to the previous quarter’s revenue of $26.04 billion and earnings per share of 61 cents.
Nvidia’s data center business continues to be its revenue powerhouse, accounting for a whopping 87% of its first-quarter revenue, reaching a record $22.56 billion. Other contributing segments include gaming and AI PCs, professional visualization, and automotive.
Despite the rosy outlook, a rumored delay in the launch of the Blackwell 200 AI accelerator has cast a shadow of uncertainty. Investors are expected to closely scrutinize management commentary on the timeline for this chip, potentially eclipsing the focus on quarterly revenue and earnings.
While some analysts believe the delay might not significantly impact Nvidia, citing the robust demand for the H200 AI chips, others express concern about its potential effect on profit margins. The China-specific H20 AI accelerator is anticipated to generate over $10 billion in revenue over the next three quarters.
Nvidia’s stock has been a phenomenal performer, surging 159% year-to-date, outpacing the S&P 500 and Nasdaq 100 indices. Analysts remain optimistic about the company’s long-term prospects, citing its leadership position in AI and accelerated computing.
The upcoming earnings call will be closely watched by investors and analysts alike, as it will shed light on Nvidia’s trajectory in the AI race and the potential impact of the Blackwell delay.
