Nvidia Corp. to Reveal Impressive Q2 Earnings Amidst AI Craze
Nvidia Corp., the prominent chip giant, is set to release its fiscal second-quarter earnings on Wednesday. The report will shed light on the company’s financial gains driven by the ongoing artificial-intelligence frenzy.
Consensus expectations for Nvidia’s upcoming report, based on estimates collected by FactSet, are as follows:
- Adjusted earnings per share to reach $2.08.
- Total revenue to amount to $11.19 billion, a remarkable 67% increase from the previous year.
- Data-center sales to more than double, reaching $8.03 billion compared to $3.81 billion in the same period last year.
- Gaming sales to rise by 17%, reaching $2.38 billion compared to $2.04 billion a year ago.
- Auto chip sales expected to climb by 41% to $309.3 million from $220 million in the previous year.
- Professional visualization sales predicted to fall by 35% to $320.4 million from $496 million a year ago.
In May, Nvidia forecasted quarterly revenue ranging from $10.78 billion to $11.22 billion, surpassing the average estimate of $7.17 billion at the time. Any quarterly revenue exceeding $8.29 billion will mark a historical milestone for the company.
Analysts hold the following expectations for the third quarter:
- Total revenue of $12.59 billion, a staggering 112% increase compared to the previous year’s total of $5.93 billion.
- Data-center sales projected to reach $9.15 billion, a significant 139% surge from $3.83 billion in the same period last year.
- Gaming sales expected to rise by 69% to $2.65 billion.
For the entire fiscal year, analysts forecast:
- Total revenue performance in line with the analyst average.
Nvidia Reports Impressive Fiscal Year 2024 Results
Nvidia, the leading player in the AI chip market, has announced its fiscal year 2024 results, showcasing a remarkable performance across various key metrics. The company’s total revenue surged to an outstanding $44.54 billion, representing a substantial 71% increase compared to the previous fiscal year’s $26.97 billion. Furthermore, adjusted earnings per share also experienced significant growth, with a jump from $3.34 to $8.27.
Impressively, Nvidia’s data-center sales skyrocketed to $32.41 billion, a staggering 116% increase when compared to the previous fiscal year’s sales of $15.01 billion. Additionally, the company witnessed a notable uptick in gaming sales, reaching $10.02 billion, marking a solid 10.5% increase from the previous year’s $9.07 billion.
The high demand for Nvidia’s AI equipment has led to supply constraints, which will be further explored in the report expected on Wednesday. Analysts are predicting a recovery in demand for non-AI chips in the coming year, indicating a balanced trend in the industry.
Nvidia’s phenomenal performance is reflected in its stock, which has experienced an impressive year-to-date increase of over 210%. In comparison, the PHLX Semiconductor Index (SOX) gained 39%, the S&P 500 (SPX) rose by 14%, and the Nasdaq Composite (COMP) surged by 29% during the same period. Despite a slight dip of 3.8% from its all-time high on July 18, Nvidia remains a strong contender in the market.
While Nvidia dominates the AI chip market, Advanced Micro Devices Inc. (AMD) holds a distant second position. AMD recently reported a decline in data-center numbers; however, it’s worth noting that their results did not include comparable AI chip sales.
The remarkable achievements of Nvidia’s fiscal year 2024 results demonstrate their industry leadership and continued success in the AI chip market.