Nvidia will close Big Tech’s earnings season with its second-quarter results, following Trump’s ban on chip sales to China in April, revoked in July but now with a 15% fee. Nvidia expects an $8 billion hit in Q2 and faces a potential 100% tariff unless companies build in the US.
Nvidia’s shares rose 35% year to date and became the first company to reach a $4 trillion market cap. For Q2, the company is projected to report $1.01 EPS on $46.2 billion revenue, with strong year-over-year growth expected despite moderation in recent quarters.
Nvidia is expected to see continued growth in data center revenue and gaming segment revenue. Analysts predict a potential bottoming out of growth at 50%, which could attract investors and lead to multiple expansion.
Investors await Nvidia’s earnings call for updates on chip shipments, AI spending, and China sales. Analysts provide upbeat outlooks for July quarter estimates, with potential impacts on Nvidia’s growth trajectory and stock price.
Nvidia is preparing a new chip based on its Blackwell architecture for the Chinese market but may need Trump’s approval. The Chinese government has warned against using Nvidia’s chips due to security concerns, which Nvidia denies and is addressing. 1. The stock market experienced a significant drop today, with the S&P 500 falling by 2.5%. Investors are concerned about escalating tensions between the US and China, as well as uncertainty surrounding the upcoming election.
2. COVID-19 cases are on the rise in several states, prompting fears of a second wave. In Texas, hospitalizations have increased by 50% in the past two weeks, leading officials to consider reimposing restrictions.
3. Tesla announced a record-breaking quarter, with profits exceeding expectations. The electric car company reported earnings of $2.18 per share, compared to the expected $0.79 per share. Tesla’s stock price surged in after-hours trading.
4. Unemployment claims fell last week to 787,000, the lowest number since the start of the pandemic. However, economists caution that the labor market recovery is slowing, with millions still out of work.
5. The US government has filed an antitrust lawsuit against Google, accusing the tech giant of monopolistic behavior. The lawsuit alleges that Google uses its dominance in search to stifle competition and limit consumer choice. Google has denied the claims and plans to fight the lawsuit in court.
Read more at Yahoo Finance: Nvidia to report second quarter earnings, expecting $8 billion hit from China chip ban