NVIDIA beats earnings estimates in Q2, but delays in Blackwell chip delivery could impact stock

From Nasdaq: 2024-08-29 08:05:00

NVIDIA reported impressive Q2 fiscal 2025 results – beating estimates with non-GAAP earnings of 68 cents/share, up 152% year-over-year. Revenues soared 122% to $30.04 billion, driven by record sales in Data Center. Despite stock growth of 153.7% YTD, delays in AI chip Blackwell delivery could impact performance.

Revenue details showed Graphics segment at $3.59 billion, Compute & Networking at $26.45 billion. Data Center revenues rose 154% to $26.27 billion, while Gaming revenues grew 16% to $2.88 billion. Professional Visualization and Automotive sales also increased significantly, with gross margin expanding to 75.7%.

Operating income surged 156% to $19.94 billion, with net income margin at 56.4%. Cash, cash equivalents, and marketable securities increased to $34.8 billion, with operating cash flow reaching $14.5 billion. The company returned $246 million to shareholders and repurchased $7.16 billion in stocks in Q2.

For Q3, NVIDIA expects revenues of $32.5 billion, with non-GAAP gross margin projected at 75%. Updates on AI chip Blackwell revealed production yield improvements and expected ramp-up in Q4. Delays in chip delivery could impact major customers and push them towards competitors, affecting NVIDIA’s near-term outlook.



Read more at Nasdaq: NVIDIA’s Q2 Earnings Beat: Can Blackwell Delay Drag Down NVDA Stock?