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NVIDIA earnings top estimates, Blackwell production ramp expected in Q4

Published 2024-08-28, 04:40 p/m
© Reuters NVIDIA earnings top estimates, Blackwell production ramp expected in Q4
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Proactive Investors - NVIDIA Corp (NASDAQ:NVDA, ETR:NVD) shares moved lower after Wednesday’s closing bell despite the chipmaker’s second quarter earnings topping estimates and guiding revenue above forecasts for the current quarter.

For Q2 fiscal 2025, earnings per share of $0.68 topped estimates of $0.64.

Revenue jumped 122% year-over-year to $30 billion, ahead of NVIDIA’s guidance of $28 billion at the midpoint and Street estimates of $28.4 billion.

Data Center revenue was a record $26.3 billion, up 154% from the year-ago quarter and ahead of the consensus $25 billion.

Growth in this segment was attributed to demand for NVIDIA’s Hopper GPU computing platform with 45% of revenue stemming from cloud service providers and more than 50% from consumer internet and enterprise companies.

NVIDIA CEO Jensen Huang noted that the company began shipping samples of its upcoming AI chips Blackwell to customers during Q2.

The company anticipates Blackwell production ramp in Q4 with it expecting to ship “several billion dollars” in Blackwell revenue during that quarter.

“Hopper demand remains strong, and the anticipation for Blackwell is incredible,” Huang said in a statement.

“NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.”

For the third quarter, NVIDIA guided revenue of $32.5 billion at the midpoint, ahead of Street forecasts of about $31 billion.

Amid lofty investor expectations, NVIDIA shares traded down 3.7% at $121 post-earnings.

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