NVIDIA expected to report strong earnings on August 28, driven by tech giants' investments.

From Nasdaq.: 2024-08-26 16:02:00

NVIDIA will report its Q2 2025 earnings on August 28, with analysts expecting $0.63 EPS and $28.2 billion in revenues, up significantly year-over-year. The company has consistently beaten expectations and raised guidance in recent quarters.

Data center revenue could see another strong quarter as tech giants like Microsoft, Amazon, Alphabet, and Meta Platforms continue to invest in AI infrastructure. These companies spent over $100 billion in the first two quarters, with a significant portion going towards NVIDIA’s GPUs.

NVIDIA’s stock has surged this year but remains below its record high, with shares trading at 48x forward earnings. Despite the increase, earnings growth has outpaced the share price, suggesting the stock may not be overvalued.

NVIDIA’s dominance in AI chips is unparalleled, with the company’s CUDA software and full-stack accelerated computing platform solidifying its position in the market. Any potential rival would need to develop superior hardware, software, and access to advanced manufacturing capabilities.

Investors seeking exposure to NVIDIA can consider single-stock ETFs like NVDL and NVDX, which offer double the daily return of the stock. These ETFs can be used for short-term trading around earnings but require careful monitoring due to volatility.

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Read more at Nasdaq.: Here’s How You Can Play NVIDIA’s Earnings