Nvidia's Q2 2025 Earnings Surpass Expectations, Driven by AI Boom

Nvidia reports earnings after the bell

Nvidia CEO Jensen Huang speaks during Computex 2024 in Taipei on June 4, 2024. Nvidia reports second fiscal-quarter earnings Wednesday after the bell. Here is what Wall Street expects from the chipmaker in the quarter ending in July, according to LSEG estimates: Nvidia is the primary beneficiary of the ongoing artificial intelligence boom. Its market value has expanded more than nine times since the end of 2022. Investors will be looking for indications that AI demand remains high. While analysts expect Nvidia to post a fourth straight quarter of triple-digit revenue growth on Wednesday, year-over-year comparisons start to get much tougher, and overall growth is expected to slow for the next seven quarters. Nvidia's October-quarter forecast will be critical for justifying the company's stock price. Analysts are looking for 71 cents in earnings per share on $31.8 billion in sales, which would be about 77% annual revenue growth. Nvidia Chief Financial Officer Colette Kress will likely provide some data points to investors on a call with analysts that describe the returns on investment its customers are getting on their Nvidia orders. Investors will also want to hear when Nvidia's next-generation Blackwell AI chips will launch. Earlier this year, Nvidia CEO Jensen Huang said the company will see "a lot" of revenue from the new chips this year, but analysts and media reports suggest that the new chips may be delayed. Even with a potential Blackwell delay, that revenue could be pushed into a future quarter while boosting current-generation Hopper sales, especially the newer H200 chip.

Nvidia Earnings Preview: 5 Things To Know

Blackwell delays. Hopper demand. And the state of the emerging artificial intelligence market. Nvidia's earnings report Wednesday for the second quarter ended July 28 of its fiscal year has been hyped by investment firm Wedbush as making this "the most important week for the stock market this year and potentially in years." "There is one company in the world that is the foundation for the AI Revolution," the firm said in an August report. "And that is Nvidia with the Godfather of AI Jensen (Huang, Nvidia's CEO and co-founder) having the best perch and vantage point to discuss overall enterprise AI demand and the appetite for Nvidia's AI chips looking forward. ... We continue to estimate for every $1 spent on an Nvidia GPU chip there is an $8 to $10 multiplier across the tech sector." [RELATED: Nvidia Delays Next-Gen Blackwell GPUs Due To Design Issues: Reports] An August report by Melius Research said it is possible for Nvidia to do what it called a "Triple Lindy" in reference to the 1986 Rodney Dangerfield movie "Back to School." "The Triple Lindy would be to beat F2Q25 by $2B, guide up F3Q25 by $2B q/q and say enough to imply the F4Q25 grows q/q by another ~$2B," according to the Melius report. "Nvidia basically did this last quarter with one of the best conference calls we've ever heard. As we write this piece, this scenario seems possible - but it isn't necessary for those with a long-term horizon. It is pretty easy to be off by a billion here and there with numbers this big (Data Center sales at $105B annual revenue run rate in FY25)." Bank of America said in a report in August that it expects Nvidia sales in line with or modestly better than the Wall Street consensus of $28.6 billion, which is also ahead of Nvidia's $28 billion guidance. The investment firm specifically cited performance in the Hopper product line as fueling the positive outlook. As for Nvidia's third fiscal quarter, Bank of America predicts $30 billion in revenue, below the Wall Street consensus of $31.5 billion. The firm predicts the same revenue amounts for the fourth fiscal quarter and first quarter of Nvidia's 2026 fiscal year against the Wall Street consensus of $31.5 billion for the fourth quarter and $34.5 billion for the first quarter of fiscal year 2026, with those Wall Street numbers potentially decreasing based on the severity of Blackwell delays. Here's more of what to expect on Nvidia's earnings call Wednesday.

Nvidia set to deliver 'very strong' Q2 results: analyst

As Nvidia Corp. is set to release its latest set of earnings after markets close Wednesday, one analyst has raised his price target on the chipmaker. Bloomberg News reported Wednesday that analysts are expecting Nivida's second-quarter revenue to come in at around US$29 billion, more than double the revenue it reported a year earlier. Matt Bryson, a senior vice president at Wedbush Securities, said in an interview with BNN Bloomberg that he thinks Nivida had a "very strong fiscal Q2" and will likely provide strong guidance for the third quarter as well. "You look at Nvidia's large customers, predominantly the cloud players Microsoft, Amazon, Google, they all spent more on capex in calendar Q2," Bryson said. "You look at the large server OEMs (original equipment manufacturers), Super Micro, Gigabyte, they all reported excellent numbers driven by AI server shipments. And when Super Micro was talking about their calendar Q3 expectations, they're looking at shipping almost a billion and a half more servers." He also raised his 12-month price target on Nvidia in a note late last week to US$138 from $120. "So my $138 is based on next year's earnings. I'm using a mid-30s type multiple. Historically, Nvidia, the last few years, has traded on forward earnings in a multiple in the 30s, maybe a little bit lighter thanwhere I am," he said. Bryson added that Nvidia is likely to provide an update on its Balckwell next-generation AI chip which had been expected to be released in the second half of the year. "When Blackwell does come out, there's a whole lot of demand for the new chips because they are more powerful. They allow the largecustomers to train these larger models," he said. Bryson said Nivida typically only provides a one-quarter forecast and "Blackwell in my mind was never going to really have any financialimpact on their October quarter." "I think the more important piece around Blackwell is simply what does management have to say about the delays? Do they reassure investors that any shifts are minimal in nature?"