Leading designer of graphics chips Nvidia (NASDAQ: NVDA) will be reporting results this Wednesday after market hours. Here’s what investors should know.
Nvidia beat analysts’ revenue expectations last quarter, reporting revenues of $81.62 billion, up 85.2% year on year. It was a very strong quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Nvidia a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Nvidia’s revenue to grow 97.6% year on year, improving from the 55.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Nvidia has a history of exceeding Wall Street’s expectations.
Looking at Nvidia’s peers in the processors and graphics chips segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Intel delivered year-on-year revenue growth of 25.4%, beating analysts’ expectations by 11.7%, and Lattice Semiconductor reported revenues up 62.2%, topping estimates by 8.6%. Intel traded down 7.9% following the results while Lattice Semiconductor was also down 7%.
Read our full analysis of Intel’s results here and Lattice Semiconductor’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the processors and graphics chips stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Nvidia is up 6.3% during the same time and is heading into earnings with an average analyst price target of $304.73 (compared to the current share price of $208.82).
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