On Wednesday, Nvidia will announce their second-quarter earnings to a market that is expecting big results due to the heightened interest in AI. Analysts anticipate a 67% year-on-year rise in net sales, plus a favourable outlook for the present quarter. The company's stock has skyrocketed over threefold in 2020, with no other stock in the S&P 500 even coming close.
Nvidia is set to announce its fiscal second-quarter earnings after the market closes on Wednesday. Driven by strong demand for graphics processing units (GPUs) needed for most AI services, the company's revenue is expected to have increased 67% in the quarter ended July 31, from a year earlier. Wall Street is anticipating that Nvidia's two primary business units, gaming and Datacenter (AI chips), will report revenue of $2.38 billion and $8.03 billion, respectively. Due to the surge in the AI industry, the chipmaker's stock has more than tripled in value this year, making it the top earner in the S&P 500. However, Nvidia's $1 trillion-plus valuation and high profit multiple may not be sustainable unless the company can continue to show incredible growth in both revenue and earnings.When the company releases its earnings report, investors will be keeping a close eye on Nvidia's outlook to see if the current momentum is set to continue. Analysts have estimated that fiscal third-quarter revenue will be up 110% from the same time last year. Investigations of the company's CEO Jensen Huang's remarks and management's conversation of challenges such as supply and export restrictions from the U.S. and China may also be discussed on the earnings call.
Comments