Nvidia Q2 Earnings Preview: $92 Billion Revenue Expected

Nvidia is set to release its second-quarter earnings, a moment Wall Street has been anticipating since the AI trade began. The announcement comes as chip stocks have struggled to maintain gains over the past month following July's steep declines, driven by concerns about returns on massive AI investments.

According to Bloomberg analyst consensus estimates, Nvidia is expected to report adjusted earnings per share of $2.09 on revenue of $92 billion, marking a 96% year-over-year increase and continued quarter-over-quarter acceleration. The company recently updated its reporting framework, splitting Data Center revenue into sales from hyperscalers and AI clouds, industrial, and enterprise segments.

Data Center revenue is projected to exceed $85.4 billion, up 107%, with hyperscaler revenue expected at $43.5 billion and the other segments at $41.7 billion. Nvidia still derives most of its revenue from hyperscalers like Amazon, Google, and Microsoft, but these companies are building their own chips or selling them to third parties, potentially creating future headwinds.

Nvidia has recently announced partnerships with several major financial institutions, including BlackRock, Blackstone, KKR, Apollo, Brookfield, and Goldman Sachs, to establish a $500 billion capital pool to securitize its GPUs. The company is also backing SB Energy and OpenAI's efforts to build an 8-gigawatt data center in Ohio with up to $150 billion.