Nvidia is set to release its second-quarter earnings for fiscal 2025 after the bell on Wednesday, August 28. Investors will be closely watching for sustained growth in the data center segment and any updates on the reported delays affecting the new Blackwell artificial intelligence (AI) chip.
Analysts are projecting that Nvidia’s revenue will grow to $28.84 billion, more than double the revenue from the same period a year ago. Net income is also expected to more than double to $14.95 billion. However, there is an anticipated decline in earnings per share (EPS) primarily due to the company’s 10-for-1 stock split.
Key Metrics: Data Center Growth
Nvidia’s data center segment has experienced rapid growth due to the increasing demand for its advanced computing technology to support AI. In the first quarter of fiscal 2025, data center revenue reached a record high of $22.6 billion, surpassing the previous record set in the previous quarter.
Analysts are expecting data center revenue to reach $25.19 billion for the fiscal second quarter, setting a new record high with sales more than doubling from the year-ago period.
Business Spotlight: Reported Blackwell Delay
Earlier this month, Nvidia’s stock tumbled due to reported delays in the production of its Blackwell chip. However, Nvidia has indicated that production is still on track to ramp up in the second half of the year as planned.
Some analysts believe that investors’ worries may be overblown and that there will be little impact on customers. Raymond James analysts, for example, expect management to downplay the speculated delays and suggest that the impact will be modest, potentially even supporting increased demand for earlier chips.
Despite the reported delay, Nvidia’s stock has more than doubled in value since the beginning of the year, reaching $127.36 as of 12:30 p.m. ET on Friday.
Conclusion
Investors are eagerly awaiting Nvidia’s second-quarter earnings for fiscal 2025. Analysts are projecting significant growth in revenue and net income, driven by the strong performance of the data center segment. Additionally, any updates on the reported delays affecting the Blackwell AI chip will be closely watched.
Nvidia’s data center segment has been a key driver of its success, with revenue reaching record highs in recent quarters. The company’s advanced computing technology has been in high demand to support AI applications.
While the reported delays in the Blackwell chip caused some concern, analysts believe that the impact will be minimal and that Nvidia will be able to meet production targets in the second half of the year.
Overall, Nvidia’s stock has performed exceptionally well this year, more than doubling in value. This indicates strong investor confidence in the company’s ability to continue delivering impressive financial results.
As the market eagerly awaits Nvidia’s earnings report, all eyes will be on the data center segment and any updates on the Blackwell chip. These factors will likely determine the company’s future growth trajectory and investor sentiment.
