Will Nvidia Continue To Deliver? Investors Sweat Over Hyped-up Expectations And Potential Blackwell Delay Ahead Of Q2 Report

Chipmaker and artificial intelligence stalwart Nvidia Corp. NVDA is all set to announce its quarterly results Wednesday after the market close. Analysts are upbeat about the company scaling lofty goals and reigniting the market momentum, which has toned down a bit in recent sessions.

The Street View: The Santa Clara, California-based company is widely expected to report strong top and bottom-line growth for the fiscal year 2025-second quarter, as demand for its AI accelerators remains strong. Here’s what the Street models vis-à-vis prior periods:

	Q2’25 Consensus*	Q2’25 Guidance	Q2’24	Q1’25
Revenue	$28.68B	$28B +/- 2%	$13.51B	$26.04B
Non-GAAP EPS	64 cents	N/A	27 cents	61 cents
Gross margin (non-GAAP)	N/A	75.5% +/- 50 bps	71.2%	78.9%

WestPark Capital analyst Kevin Garrigan said he sees revenue driven by sequential growth across all end markets and particular strength in data center business. “We believe Hopper demand remains strong, with positive data points coming from various cloud customers and the AI supply chain,” he said.

Nvidia has been topping earnings estimates by about 18%, on average, in each of the previous four quarters.

See Also: Best AI Stocks

Nvidia's Business Segments: A majority of revenue contribution is from Nvidia's data center business. In the first quarter, the company derived about 87% of its total revenue from the segment, which raked in record revenue of $22.56 billion. Gaming and AI PC contributed $2.65 billion, Professional visualization $427 million and Automotive $329 million.

The Nvidia Outlook: For the third quarter, analysts, on average, estimate earnings of 71 cents per share and revenue of $31.69 billion. Nvidia’s annual earnings and revenue are estimated at $2.75 per share and $121.63 billion, respectively.

What To Watch On Earnings Call: The rumored delay in the Blackwell 200 AI accelerator has caused uneasiness among traders. Fund manager Louis Navellier expects investors to be glued in more on the management commentary regarding the timeline for the chip than on the quarterly revenue and earnings.

Morgan Stanley semiconductor analyst Joseph Moore said in a recent note that the Blackwell delay may not hurt Nvidia much as customers have rapidly pivoted to the H200 AI chips. He flagged “exceptionally strong demand” for Hopper 200 among cloud service providers and also hinted at some of the hyperscalers going in for more Hoppers.

The analyst expects the China-specific H20 AI accelerator to bring in revenue of more than $10 billion over the next three quarters.

TFI analyst Ming-Chi Kuo said he would look for whether the Blackwell 200 re-tape-out would impact profit and margin in the near term. The rumored delay in the AI chip was attributed to a design flaw. Kuo said if the company can provide details to allay investors’ concerns about GB200 shipment schedules, it would benefit the stock performance of both Nvidia and its supply chain in the next three months.

Nvidia Stock: The Jensen Huang-led company’s stock has been a stellar performer, having gained 159% year-to-date. This compares to the 18% gain for the S&P 500 Index and the 16.4% advance by the Nasdaq 100 Index. The iShares Semiconductor ETF SOX has added a little over 20% during the same period.

Here’s how the stock reacted to each of the past four earnings reports:

	Session After Earnings	Week After Earnings
Q1’25*	+9.32%	+16.4%
Q4’24**	+16.41%	+15.11%
Q3’24	-2.44%	-3.61%
Q2’24	+0.11%	+4.57%

*announced 10-for-1 stock split

**The stock had fallen about 9% from the pre-earnings high

This time around, the stock pulled back to a near-term low of $123.74 last Thursday but has come back up since then.

Analyst Garrigan is confident of the momentum continuing. “We continue to view Nvidia as an industry leader in AI and accelerated computing, with a first mover advantage and wide moats,” he said. The analyst also recommended to buy on any potential weakness following the earnings.

He has a Buy rating and a $127.50 price target for the stock.

In premarket trading on Wednesday, Nvidia rose 0.21% to $128.57, according to Benzinga Pro data.

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• Nvidia Earnings Round The Corner: Top Investors In Jensen Huang’s Company Set To Benefit If Q2 Appeases Street

Image via Nvidia Blog