Nvidia (NVDA) is set to release its second quarter earnings report after the bell on Wednesday, and the tech world is buzzing with anticipation. The report is being closely watched by investors and industry experts alike, as it is seen as a critical moment for the artificial intelligence trade and the tech sector as a whole.
The stock price of Nvidia has been on a tear this year, soaring more than 163% year to date and 60% in the last six months. In comparison, rival AMD’s stock price has only seen a modest 9% increase year to date and has actually dropped by 14% over the last six months. Intel, on the other hand, has seen its shares plummet by 57% since the start of the year and 53% over the last six months as the company grapples with a massive turnaround effort.
Analysts are expecting Nvidia to report adjusted earnings per share of $0.65 on revenue of $28.7 billion for the quarter. This would represent a significant jump of 139% in EPS and 113% in revenue compared to the same period a year ago. Nvidia’s dominance in AI chip design and software is well-established, with the company controlling between 80% and 95% of the market, according to Reuters. The upcoming release of its next-generation Blackwell line of chips is expected to further solidify its position as the world leader in AI technology.
While there have been reports of a potential delay in Blackwell shipments, analysts remain optimistic about Nvidia’s prospects in the near term. Loop Capital managing director Ananda Baruah noted that any delay in Blackwell shipments may be offset by increased production of the Hopper line of chips. The data center business is expected to be a major revenue driver for Nvidia in the quarter, with analysts predicting $24 billion in revenue, a 142% increase from the same period last year.
Overall, Wall Street is not only expecting Nvidia to exceed its Q2 expectations but also to raise its guidance for Q3. The company’s continued success in the AI market and its strong financial performance are likely to keep investors and industry watchers closely following Nvidia’s earnings report. Stay tuned for more updates on this AI juggernaut as it continues to shape the future of technology.