Analysts anticipate that NVIDIA’s upcoming earnings report, scheduled for release early Thursday morning in South Korea, may not produce the same surprise as previous quarters.
In its last two earnings announcements, NVIDIA’s stock experienced substantial increases of over 16% and 9%, fueling a broader rally in AI-related stocks. Investors are now watching closely to see if this trend will continue with the latest report.
Eugene Investment & Securities forecasts that NVIDIA’s revenue for the second quarter of fiscal year 2025 will reach $29.9 billion, reflecting a 121% year-over-year increase. They project earnings per share (EPS) to rise to $0.69, representing a 156% increase, aligning with consensus estimates. The gross profit margin (GPM) is expected to be 75.5%.
The data center segment is anticipated to generate $26.3 billion, marking a 155% increase from the previous year. Meanwhile, gaming revenue is projected to hit $2.76 billion, an 11% increase.
Lee Seung Woo, a Eugene Investment & Securities analyst, highlighted that the profit margin is a key factor to watch. The company’s guidance of 75.5% is lower than the previous quarter’s 79.1%. He pointed out that this marks the first expected decline in margin in eight quarters, which could be a significant factor.
He also mentioned that this earnings report may not deliver as big of a surprise as previous reports. With the Federal Reserve’s interest rate cuts becoming a foregone conclusion, Blackwell’s performance and GPM guidance will be crucial pieces of the puzzle for the U.S. stock market and tech sector as the presidential election approaches.
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