Nvidia (NASDAQ: NVDA) has solidified its position as a cornerstone of the artificial intelligence (AI) revolution, and the anticipation surrounding its upcoming earnings report underscores the company’s pivotal role in this rapidly evolving industry. Nvidia’s cutting-edge data center chips are at the core of AI development, and the insatiable demand for these powerful processors has been driving the company’s financial performance to new heights.
As the AI boom continues to accelerate, all eyes are on Nvidia as it prepares to release its financial results for the second quarter of fiscal 2025, which ended on July 31. This report, scheduled to be unveiled after the market closes today, will provide investors with fresh insights into Nvidia’s sales and its outlook for the rest of the year.
Here’s an in-depth look at what to expect from Nvidia’s Q2 earnings report and how it might impact the company’s stock.
Wall Street’s Expectations: Another Blowout Quarter?
Nvidia’s official guidance for Q2 fiscal 2025 suggests a total revenue of around $28 billion, representing a staggering 107% growth compared to the same period last year. However, this guidance might be conservative. Wall Street analysts, who have been steadily raising their estimates over the past few months, are now expecting Nvidia to report approximately $28.7 billion in revenue, according to data from LSEG (formerly Refinitiv).
The optimism surrounding Nvidia’s Q2 performance stems from its impressive results in the first quarter, where the company generated $26 billion in revenue—$2 billion more than its initial forecast. Given this momentum, many analysts believe that Nvidia could once again exceed expectations in Q2.
One of the key metrics investors will be watching is the performance of Nvidia’s data center segment, which accounted for $22.6 billion of the company’s total Q1 revenue. Nvidia’s graphics processing units (GPUs) designed for data centers are crucial for AI development, and Wall Street expects this segment to generate between $24.5 billion and $25.2 billion in Q2. If Nvidia surpasses the high end of this range, it could ignite a fresh wave of enthusiasm for the stock.
Tech Giants Driving Demand for Nvidia’s GPUs
The demand for Nvidia’s GPUs has been fueled by major tech companies like Microsoft, Alphabet (Google), and Meta Platforms, all of which have committed to massive investments in AI data center infrastructure. These companies are spending tens of billions of dollars to build out their AI capabilities, and a significant portion of that spending is directed towards Nvidia’s state-of-the-art GPUs.
Among Nvidia’s product offerings, the H100 GPU has set the industry benchmark, establishing itself as the go-to choice for AI developers. The H100’s successor, the H200, has already made waves in the industry with its ability to perform AI inference at twice the speed of its predecessor. This next-generation chip is expected to further cement Nvidia’s dominance in the AI hardware market.
In addition to the H200, Nvidia has been working on an entirely new generation of GPUs based on its recently announced Blackwell architecture. These chips are designed to handle trillion-parameter large language models (LLMs), which are at the forefront of AI research and development.
The Blackwell Chip: A Game-Changer on the Horizon?
Nvidia CEO Jensen Huang has touted the Blackwell GPU as a major advancement in AI technology. Priced between $30,000 and $40,000, the B200 GPU is expected to offer substantial performance improvements over the H100, making it more cost-effective for businesses to deploy advanced AI models.
However, there have been rumors of a potential delay in the rollout of the Blackwell chips. While Nvidia had originally planned to start shipping these GPUs in Q2, a report from The Information suggests that a technical issue may have pushed back the timeline by three months. Nvidia has not confirmed these delays, but investors will be keenly listening for any updates during the Q2 earnings call.
Jensen Huang previously indicated that he expects Blackwell to contribute “a lot” of revenue this year, so any deviation from this timeline could have significant implications for Nvidia’s financial performance in the latter half of fiscal 2025.
Nvidia’s Stock Performance: What’s Next?
Nvidia’s stock has been on an extraordinary run, skyrocketing 765% since the start of 2023, driven by the AI boom. The company’s market capitalization now stands at a staggering $3.1 trillion, making it one of the most valuable companies in the world.
While the stock’s day-to-day performance can be volatile, Nvidia’s Q1 earnings report in May offers a glimpse into how the market might react to the Q2 results. After Nvidia beat its Q1 revenue guidance by $2 billion, the stock jumped 9.3% the following day. A similar result in Q2 could potentially yield a comparable surge in Nvidia’s share price.
That said, Nvidia’s stock is currently trading about 7% below its all-time high due to a broader market correction earlier this month. If the Q2 results fall short of expectations, Nvidia’s stock could face further pressure. However, for long-term investors, Nvidia still presents an attractive opportunity.
Is Nvidia Still a Good Buy?
Despite its massive gains, Nvidia’s stock may still have room to grow, especially for investors with a multi-year time horizon. Wall Street expects Nvidia to report $0.64 in earnings per share (EPS) in Q2, bringing its trailing 12-month EPS to $2.17. This gives the stock a price-to-earnings (P/E) ratio of 58.3, which is nearly double that of the Nasdaq-100 index’s P/E ratio of 32.
However, when looking ahead to fiscal 2026, analysts predict Nvidia will generate $3.81 in EPS, which would lower its forward P/E ratio to a more reasonable 33.2. This suggests that Nvidia’s current valuation might be justified, given its growth prospects in the AI sector.
As long as Nvidia’s Q2 report doesn’t deliver any negative surprises, the stock could be a solid investment for those willing to ride out the short-term volatility and focus on the company’s long-term potential.
Final Thoughts
Nvidia’s Q2 fiscal 2025 earnings report is shaping up to be one of the most closely watched events in the financial world. With the AI revolution in full swing, Nvidia’s performance and outlook will provide critical insights into the future of this transformative industry.
Whether you’re a seasoned investor or someone looking to capitalize on the AI boom, Nvidia’s stock remains a key player to watch. As the company continues to push the boundaries of AI technology, its impact on the market—and on our everyday lives—is likely to grow even further.