Nvidia is set to release its second-quarter earnings for fiscal 2025 on Wednesday, August 28. Analysts are expecting significant growth in revenue and earnings compared to the same period last year. Investors will be closely watching for sustained growth in the data center segment, as well as any updates on the reported delays affecting the new Blackwell artificial intelligence (AI) chip.
Revenue projections for the second quarter stand at $28.84 billion, more than double Nvidia’s revenue in the same period a year ago. Net income is also expected to more than double to $14.95 billion. However, there is an anticipated sharp 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 predict that revenue for the data center business will reach $25.19 billion in the second quarter, setting a new record high with sales more than doubling from the previous year.
Business Spotlight: Reported Blackwell Delay
Earlier this month, Nvidia’s stock took a hit due to reported delays in the production of its Blackwell chip. However, the company has reassured investors 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 expect management to downplay the speculated delays, suggesting that they could have a modest impact and support increased demand for earlier chips.
Nvidia’s stock has performed well this year, more than doubling in value since the beginning of the year. As of Friday’s close, the stock was valued at $129.37.
In conclusion, Nvidia’s second-quarter earnings report for fiscal 2025 is highly anticipated by investors. Analysts expect significant growth in revenue and earnings, with a particular focus on the data center segment. Additionally, investors will be looking for updates on the reported delays affecting the Blackwell AI chip. Despite the recent stock price volatility, Nvidia’s stock has performed well this year. The market will be closely watching the earnings report to assess the company’s future prospects and potential impact on its stock price.
UPDATE—Aug. 23, 2024: This article has been updated to reflect more recent share price information.
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