Nvidia's Q2 Earnings Preview: Strong Growth Expected, But Gross Margins Key

Nvidia is set to release its Q2 earnings after the close on August 26. The company is expected to report strong growth, with revenue forecast at $91 billion, a 96% increase from the same quarter last year. Earnings per share (EPS) are predicted to reach $2.08, up around 98% year-over-year.

The first quarter without China data-center sales will provide investors with a clearer picture of underlying demand across Nvidia's business. However, any meaningful recovery in China sales later this year could lead to additional upside.

Gross margins are expected to reach 75%, and any significant deterioration could raise concerns about the profitability of Nvidia's AI build-out, even if revenue continues to grow strongly.