(NASDAQ:NVDA), the undisputed leader in AI accelerators and graphics processing units (GPUs), is set to report its fiscal second-quarter results after market close at 4:20 PM ET today. A call with CEO Jensen Huang and CFO Colette Kress is scheduled for 5:00 PM ET. Consensus expectations indicate another period of standout growth, as the tech behemoth capitalizes on the dominant demand for AI infrastructure and accelerated computing.
NVDA shares are currently trading at $181.72, valuing the Santa Clara-based chip titan at a market cap of roughly $4.4 trillion and making it the most valuable company in the world. Implied volatility points to a post-earnings move of +/-8% in either direction.
Source: Investing.com
With Wall Street bracing for a market cap swing of up to $260 billion after the report, this is a referendum on the entire AI-fueled tech rally. Here’s what you need to know heading into the print:
Analyst Forecasts
Analysts are expecting blowout growth across key metrics, driven by Nvidia’s dominance in the AI hardware market.
- Earnings per share (EPS): $1.00, up 47.1% year-over-year; last year’s comparable figure was $0.68.
- Revenue: $45.8 billion, marking a 52.7% year-over-year increase.
- Data Center Revenue: This is the segment everyone watches. Projections forecast an eye-watering 130%+ annual increase, as sales of AI accelerators continue to soar off the shelves.
Source: Investing.com
The year-over-year growth forecasts for Nvidia are figures that seem to belong to a hyper-growth startup, not one of the world’s largest companies. The insatiable demand from cloud giants like , , and Google, as well as from sovereign nations building their own AI infrastructure, has created a demand tsunami for Nvidia’s H100 and new Blackwell-generation GPUs.
The Verdict: A Beat is Expected, But Will It Be Enough?
Nvidia is expected to beat consensus estimates by a wide margin. The Jensen Huang-led company has a long and consistent history of delivering results that surpass even the most bullish forecasts. The real drama, however, lies in the quality of that beat and, most critically, the forward guidance.
The forecast for the next quarter is the most critical number in the entire report. It must come in comfortably above current expectations to signal that this unprecedented growth momentum is not slowing down.
Most analysts remain bullish, but there’s rising caution: KeyBanc warns Nvidia might guide below consensus for Q3 due to China uncertainty. At the same time, Morgan Stanley and Evercore raised targets but flagged export headwinds.
Implications for the Broader Market: The Ripple Effect
Nvidia’s report will send powerful ripples across the entire market, creating clear winners and losers based on the outcome.
If Nvidia delivers a strong beat and raises guidance: This will be seen as a green light for the entire AI trade. It will validate the massive capital expenditures of cloud providers and provide a powerful tailwind for the entire semiconductor sector (, ), server makers (, ), and AI-related software companies.
As Nvidia has been the primary driver of the S&P 500’s year-to-date gains, a strong report could ignite a broader market rally and reaffirm the tech-led bull market.
Source: Investing.com
If Nvidia meets estimates but provides in-line or cautious guidance: This is the nightmare scenario for the bulls. It would be interpreted as the first sign that the AI growth story is peaking, feeding concerns of a potential “AI bubble”. Such a result would likely trigger significant, immediate profit-taking in Nvidia’s stock and spark a sell-off across the entire AI ecosystem.
Given the market’s heavy concentration in Nvidia and other tech giants, a miss or weak guidance could be the catalyst for a much-needed market correction.
Bottom Line
The question Wall Street is asking is not if Nvidia will beat estimates, but by how much, and whether its forward guidance can possibly justify the stock’s meteoric rise and the lofty valuations of countless other companies riding its coattails.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the . I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and .
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
