NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) is expected to once again deliver upside against high expectations when the chipmaker posts its latest earnings report after the stock market closes on Wednesday.
For the quarter ended July 28, Wall Street analysts expect revenue to surge more than 110% year-over-year to $28.4 billion, in line with Nvidia’s guidance at the midpoint of $28 billion.
Earnings per share (EPS) are also expected to more than double from $0.27 to $0.64.
Analysts at UBS see Nvidia delivering upside consistent with the past few quarters led by its Data Center segment, which they project could exceed 26 billion, above the Street consensus of $25 billion.
They see Data Center contributing $26.3 billion, up 17% quarter-over-quarter, comprised of $22.9 billion in Compute and $4.3 billion in Networking.
Gaming revenue is expected to grow 3% quarter-over-quarter to $2.7 billion, in line with Street estimates.
“Indicators we rely on generally skewed bullish,” the bank's analysts wrote in a note to clients, highlighting strong results and positive demand signals from competitors Super Micro Computer, Taiwan Semiconductor Manufacturing Company, King Yuan Electronics Corp, and Quanta.
In terms of guidance, they see Nvidia continuing its recent pattern and guiding revenue for Q3 in the range of $31 billion to $32 billion, implying Data Center contribution of close to $28 billion.
We believe investor bogeys are already in this range (Street revenue is approximately $31.5 billion) which optically doesn't create a great setup, but we believe Blackwell (BW) commentary will overshadow wherever guidance comes out as investors are already looking to the BW ramp in 2025, we believe NVDA will generally communicate that BW is ‘on track,’” they wrote.
“The biggest issue to us on the setup is how the company responds to the answer given last earnings call that it would have ‘significant’ BW revenue this year, as this was in our eyes never going to be the case as customer volume shipments were not starting until mid-December (and now pushed four to six weeks).”
Analysts awarded Nvidia a ‘Buy’ rating at a $150 price target.
Shares of Nvidia traded down 3.2% at $124 late morning on Wednesday.
- Updated with revised revenue and EPS estimates, share price -