Anticipation Builds: Nvidia's Q2 2025 Earnings Preview
AI powerhouse, Nvidia, is set to unveil its second-quarter earnings on Wednesday, August 28th. With anticipation running high, let's delve into what to expect from Nvidia's upcoming earnings release.
Can Nvidia Beat the Street?
Market expectations are high ahead of Nvidia’s Q2 FY2025 earnings release, with analysts projecting impressive growth figures. The consensus estimate points to a revenue of approximately $28.84 billion, more than doubling from the same period last year, driven by Nvidia's continued dominance in the AI chip market. Earnings per share (EPS) are expected to be around $0.59, reflecting robust profitability. These projections mark a significant increase from the previous year's figures, with net income also expected to more than double to about $14.95 billion.
Analysts will be focused on whether Nvidia can maintain its momentum, particularly in light of its impressive Q1 performance, where the company reported a 5x year-over-year increase in data center sales. Given the massive capital expenditures by major tech giants such as Amazon, Microsoft, and Google on AI infrastructure, Nvidia is positioned well to meet or even exceed market expectations. However, potential supply chain constraints and the evolving competitive landscape with rivals like AMD and Intel could present challenges that Nvidia must navigate to satisfy the high market expectations.
Key Growth Drivers
1. Data Center Segment: Nvidia’s data center business is expected to remain a primary growth driver, with analysts projecting record revenue of $25.19 billion for Q2 due to high demand for AI-related technologies.
2. Gaming and Automotive Markets: Demand for Nvidia’s GPUs in gaming continues to grow, while its automotive computing platforms are seeing increased adoption, particularly in the electric and autonomous vehicle markets.
3. AI and Omniverse Platform: Nvidia's leadership in AI technology and the rapid growth of its Omniverse 3D simulation platform further solidify its position in the market, providing additional avenues for expansion.
Key Levels: Technical Analysis
Earlier this month, we highlighted that Nvidia's share price had pulled back into a key area of support created by the broken double-top swing highs from March 2024. This support level proved significant, triggering a +30% rally in August. The rally has broken above the descending retracement line formed in July and taken prices back above the 50-day moving average (MA), signalling a shift to bullish sentiment.
In the days leading up to the earnings report, Nvidia's share price has been consolidating within a small box formation, suggesting potential breakout triggers. Key levels to watch include a retest of the June highs. A positive earnings surprise could propel a breakout above this consolidation, while a dip below the 50-day MA could lead to a swift retest of the August support level.
Key Levels to Watch:
• Resistance: June highs
• Short-term Support: 50-day moving average
• Major Support: August lows, formed by the broken double-top swing highs from March 2024
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.51% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Can Nvidia Beat the Street?
Market expectations are high ahead of Nvidia’s Q2 FY2025 earnings release, with analysts projecting impressive growth figures. The consensus estimate points to a revenue of approximately $28.84 billion, more than doubling from the same period last year, driven by Nvidia's continued dominance in the AI chip market. Earnings per share (EPS) are expected to be around $0.59, reflecting robust profitability. These projections mark a significant increase from the previous year's figures, with net income also expected to more than double to about $14.95 billion.
Analysts will be focused on whether Nvidia can maintain its momentum, particularly in light of its impressive Q1 performance, where the company reported a 5x year-over-year increase in data center sales. Given the massive capital expenditures by major tech giants such as Amazon, Microsoft, and Google on AI infrastructure, Nvidia is positioned well to meet or even exceed market expectations. However, potential supply chain constraints and the evolving competitive landscape with rivals like AMD and Intel could present challenges that Nvidia must navigate to satisfy the high market expectations.
Key Growth Drivers
1. Data Center Segment: Nvidia’s data center business is expected to remain a primary growth driver, with analysts projecting record revenue of $25.19 billion for Q2 due to high demand for AI-related technologies.
2. Gaming and Automotive Markets: Demand for Nvidia’s GPUs in gaming continues to grow, while its automotive computing platforms are seeing increased adoption, particularly in the electric and autonomous vehicle markets.
3. AI and Omniverse Platform: Nvidia's leadership in AI technology and the rapid growth of its Omniverse 3D simulation platform further solidify its position in the market, providing additional avenues for expansion.
Key Levels: Technical Analysis
Earlier this month, we highlighted that Nvidia's share price had pulled back into a key area of support created by the broken double-top swing highs from March 2024. This support level proved significant, triggering a +30% rally in August. The rally has broken above the descending retracement line formed in July and taken prices back above the 50-day moving average (MA), signalling a shift to bullish sentiment.
In the days leading up to the earnings report, Nvidia's share price has been consolidating within a small box formation, suggesting potential breakout triggers. Key levels to watch include a retest of the June highs. A positive earnings surprise could propel a breakout above this consolidation, while a dip below the 50-day MA could lead to a swift retest of the August support level.
Key Levels to Watch:
• Resistance: June highs
• Short-term Support: 50-day moving average
• Major Support: August lows, formed by the broken double-top swing highs from March 2024
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83.51% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.