Wednesday, December 25, 2024

Nvidia reports earnings after the bell

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Nvidia CEO Jensen Huang speaks during Computex 2024 in Taipei on June 4, 2024. 

I-hwa Cheng | AFP | Getty Images

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:

  • Earnings per share: 64 cents adjusted
  • Revenue: $28.7 billion

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.

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