1 week ago
Nvidia Earnings Put AI Valuations and Stock Volatility in Focus
Nvidia makes computer chips that are widely used for artificial intelligence.
It will announce its latest financial results after the market closes on 26 August.
Analysts expect the company to report very high sales and profits.
Much of this growth is expected to come from data centres buying Nvidia chips.
Investors also want to hear about Nvidia’s newer Blackwell and Rubin products.
Some big customers are making their own chips, which could create competition for Nvidia later.
Nvidia has often beaten analysts’ forecasts, so investors are expecting another strong report.
Traders think the share price could move about 5% in either direction after the results.
Nvidia is due to report its June-quarter results after Wall Street trading ends on 26 August.
Analysts expect adjusted earnings per share of $2.09 and revenue of $92 billion, up 96% year over year.
Data centre revenue is projected to reach $85.4 billion, driven by hyperscalers and AI infrastructure demand.
Investors will seek updates on the Blackwell and Rubin platforms, customer spending, and future AI demand.
Options markets imply roughly a 5% share-price move, equivalent to about $280 billion in market value.
- Who
- Nvidia, its chief executive Jensen Huang, investors, analysts, and major technology customers.
- What
- Nvidia is reporting its June-ending quarterly financial results amid high expectations and anticipated share-price volatility.
- Where
- The results will affect trading on Wall Street; Nvidia also agreed to support a data-centre campus in Ohio.
- When
- The results are scheduled for after-market hours on 26 August.
- Why
- Investors want to assess AI demand, whether Nvidia’s valuations are justified, future customer spending, and competitive risks from customers developing their own chips.
Reasons for optimism
Risks and concerns
AI demand and earnings growth
Reasons for optimism
Analysts expect revenue of $92 billion, continued quarter-on-quarter growth, and a 96% year-over-year increase. Nvidia’s history of beating expectations has also raised hopes for another strong performance.
Risks and concerns
The company’s share price has faced pressure, and investors are questioning whether high AI valuations are justified.
Customer spending
Reasons for optimism
Strong spending by hyperscalers and other AI infrastructure customers is expected to drive data centre revenue above $85.4 billion.
Risks and concerns
Amazon, Google, and Microsoft are developing their own chips and expanding chip offerings to third parties, potentially reducing dependence on Nvidia.
New investments and platforms
Reasons for optimism
Investors may welcome updates on Nvidia’s lower-energy Blackwell and Rubin platforms, as well as its financing support for AI infrastructure.
Risks and concerns
Investors remain concerned about the scale of Nvidia’s commitments, including up to $105 billion for an Ohio data-centre campus, and will seek clarity on future demand and customer capital spending.
Key facts
- Expected adjusted EPS
- $2.09
- Expected revenue
- $92 billion
- Expected overall revenue growth
- 96% year over year
- Expected data centre revenue
- $85.4 billion, up 107% year over year
- Implied share-price move
- Approximately 5% in either direction
- Implied market-value swing
- Approximately $280 billion
- AI infrastructure financing partnership
- Nvidia said it was partnering with Wall Street firms to provide $500 billion in financing.
Sources
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