Nvidia Earnings Live: Wall Street Overwhelmingly Bullish on Chipmaker's Stock Ahead of Quarterly Report
H20 Chip Sales in China Haven’t Yet Resumed, CFO Says
7 minutes ago
Nvidia CFO Collette Kress said the company has not yet resumed sales of its H20 chips in China, as it waits for the U.S. government to codify its revenue-sharing agreement.
The chipmaker recently agreed to pay 15% of its China chip revenue to the government in exchange for export licenses, but Kress said the government has yet to publish new export regulations. As such, Nvidia did not include H20 sales in its third-quarter forecast.
Nvidia said its second-quarter results were boosted by the release of $180 million tied to sales of inventory of its H20 chips, which were prohibited in China during the quarter by the Trump administration’s export controls, to a customer outside China.
The chipmaker said that without its sales of previously reserved H20 chips outside of China, it would have reported EPS of $1.04, rather than the $1.05 that was reported.
Revenue Breakdown by Segment
35 minutes ago
Data center revenue makes up, by a long margin, more than the rest of Nvidia’s segments combined. Here’s a breakdown of fiscal second-quarter revenue by segment, according to the company:
- Data center revenue, at $41.1 billion rose 5% from the fiscal first quarter and 56% year over year.
- Gaming revenue came in at $4.3 billion. It rose 14% sequentially and 49% year-over-year.
- Professional visualization revenue, at $601 million, was up 18% from the first quarter and 32% from the year-ago quarter.
- Automotive and robotics revenue was $586 million. It was 3% higher than in the fiscal first quarter, and 69% higher year-over-year.
Revenue Guidance Doesn’t Include H20 China Chip Sales
44 minutes ago
Nvidia on Wednesday told investors to expect fiscal third-quarter revenue of $54 billion, give or take 2%. Those figures don’t include any sales of its H20 chips to China.
At the high end of that range, sales would be above $55 billion. At the low end, it would mean something a bit below $53 billion. The latest Visible Alpha consensus estimate is $53.8 billion.
The company expects fiscal third-quarter GAAP and non-GAAP gross margins of 73.3% and 73.5%, respectively, give or take 50 basis points. It pointed investors toward full-year gross margins, a closely watched figure, in the “mid-70% range.”
GAAP and non-GAAP operating expenses were projected at $5.9 billion and $4.2 billion respectively, for the current quarter, with full-year operating expense growth seen in the “high-30% range.”
The company also approved an additional $60 billion in stock buybacks.
Record Data Center Sales Slightly Miss Expectation
55 minutes ago
Nvidia’s data center sales climbed to a quarterly record of $41.1 billion in the second quarter, up 56% from a year ago. However, that was slightly below analysts’ estimates, which climbed ahead of the report.
Several of Nvidia’s major Big Tech clients, including Microsoft (MSFT), Meta (META), Amazon (AMZN) and Google parent Alphabet (GOOGL), have committed to heavy spending on infrastructure to build out their AI capacity in their recent earnings calls, contributing to investors’ high expectations.
Last month, Alphabet raised its full-year forecast for capital expenditures to $85 billion, citing growing demand for cloud computing products and services, while Meta said it now expects $66 billion to $72 billion in capital expenditures this year, raising the lower end of its projected range by $2 billion.
Revenue, Profit Top Analysts’ Estimates
58 minutes ago
The AI chipmaker posted adjusted earnings of $1.05 per share, compared to the $1.02 that analysts had expected.
Revenue soared 56% from the year-ago period to a record $46.7 billion in the second quarter. That compared with Street expectations for revenue of $46.52 billion, according to analysts’ estimates compiled by Visible Alpha.
Nvidia shares were down about 2.5% in recent after-hours trading.
Today’s Headline Stock is Having a Strong 2025
1 hr 12 min ago
Nvidia (NVDA) is the best-performing stock in the Magnificent Seven this year, its shares rising 35% through today’s close.
The AI chipmaker’s shares have thus far outperformed all six of their big tech counterparts – Meta (META), up about 28%, is closest – as well as the Roundhill Magnificent Seven ETF (MAGS), up 11% this year, and the S&P 500 (SPX), up about 10%.
Most of the Magnificent Seven stocks are in the green this year, with Tesla (TSLA) and Apple (AAPL) the exceptions. Amazon (AMZN) and Alphabet (GOOG, GOOGL) have risen, but they’re also trailing the S&P 500 in 2025.
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What Analysts Think of Nvidia Heading Into Earnings
1 hr 47 min ago
Wall Street analysts expect Nvidia’s sales could reach another record high, despite an anticipated hit from export curbs.
The company is projected to report adjusted earnings per share of $1.02 for the fiscal second quarter on an over 50% year-over-year jump in revenue to $46.52 billion, according to consensus estimates compiled by Visible Alpha. CEO Jensen Huang could also provide more details during the company’s earnings call about the timing of new products, including Nvidia’s next-generation Rubin lineup and a more powerful AI chip tailored for China’s market.
In May, Nvidia warned it could face an $8 billion hit from China export restrictions, and although the company recently struck a 15% revenue-sharing agreement with the Trump administration to resume sales of its H20 chip in China, Wednesday’s report will still reflect the full impact of the restrictions.
Despite near-term trade policy headwinds, Wall Street analysts are overwhelmingly bullish on the chipmaker’s prospects. Of the 14 analysts with current ratings surveyed by Visible Alpha, 13 call the stock a “buy,” compared to one “hold” rating. Their targets range from $155 to $225, with the majority above $200, suggesting significant upside from the current price of around $182.
“Expectations have risen ahead of Nvidia’s earnings, and we think rightfully so,” Morgan Stanley analysts said last week, as they raised their target to $206 from $200, citing strong AI demand signals. UBS also raised its target, to $205 from $175, while Wedbush boosted its to $210 from $175.
Traders Expect Big Post-Earnings Stock Price Move
1 hr 55 min ago
Nvidia’s stock is expected to move approximately 6.2% in either direction by the end of the week, according to options pricing data. That big of a move from Tuesday’s close would put shares at either $192.88, an all-time high that translates to a $4.7 trillion market capitalization, or $170.66, its lowest price since mid-July.
Nvidia has reported earnings 10 times since the release of ChatGPT in late 2022 sparked the AI craze that’s made it the world’s most valuable company. The stock posted double-digit gains in the days after four of those reports, most recently in May 2024.
But Nvidia’s earnings have struggled recently to clear the exceptionally high bar set by Wall Street. In the past four quarters, Nvidia stock has moved an average of 3.2% between reporting earnings and the end of the week. On only one of those occasions—the most recent report in May—did Nvidia finish the week above where it was before reporting earnings.
Investors will be scrutinizing Nvidia’s report Wednesday for confirmation that AI demand remains strong. Hyperscalers Microsoft (MSFT), Alphabet (GOOG), and Amazon (AMZN) all recently stood by plans to spend hundreds of billions of dollars this year on data center infrastructure and other capital goods, citing robust demand for AI and cloud computing. Nvidia, with an estimated 80% to 90% share of the AI chip market, should be the biggest beneficiary of that spending.
Wall Street will also be hoping for updates on sales to China. Nvidia warned in May that the Trump administration’s decision to tighten China export controls could cost it up to $8 billion in the second quarter. Earlier this month, Nvidia and competitor Advanced Micro Devices (AMD) struck a deal with the Trump administration that allows them to resume sales of key AI chips to China in exchange for a 15% cut. That deal came too late to have any impact on Wednesday’s results, but it should be factored into Nvidia’s guidance.
Analysts are overwhelmingly bullish on Nvidia. Of the 14 analysts tracked by Visible Alpha with current ratings on Nvidia’s stock, 13 rate it a “buy” and one gives it a neutral “hold” rating. Their targets range from $155 to $225, with the majority above $200. The stock was little changed near $182 in late trading Wednesday.