Nvidia’s shares have outperformed both its Magnificent 7 group counterparts and the tech-heavy Nasdaq 100 index this year.
The Nvidia results are anticipated to significantly impact the near-term trajectory of the US stock market. Nvidia, with a market cap of over $3.3 trillion, will be releasing its much anticipated quarterly results soon.
The leading chip-maker is projected to report another good quarter of sales and earnings growth and deliver higher earnings per share for the shareholders. Nvidia reported Diluted earnings per share of $0.60 in Q1 and $0.67 in Q2.
Nvidia shares have performed brilliantly this year, surpassing not only its counterparts in the Magnificent 7 group, but also the tech-heavy Nasdaq 100 index.
Recently, the Nvidia stock (NVDA) was under pressure following a report from the Information highlighting overheating issues with its latest Blackwell artificial intelligence servers.
Nvidia’s share price is trading around $140, up by over 180 per cent in 12 months and year to date in 2024.
In the 2nd quarter, Nvidia recorded quarterly revenue of $30.0 billion, up 15% from Q1 and up 122% from a year ago. In Q2, the quarterly Data Center revenue reached $26.3 billion, a 16% increase from Q1 and a 154% increase from the previous year.
Over the last five quarters, NVIDIA has consistently beaten its guidance by about $2 billion.
Zacks Research expects the company to bring in 81.9% more earnings in Q3 compared to the same period last year on 81.1% higher revenues. It is expected that the company will report revenue for the current quarter in the $34.5 to $35 billion range, followed by revenue guidance of $36.5 to $37 billion.
During the first half of fiscal 2025, NVIDIA returned $15.4 billion to shareholders in the form of shares repurchased and cash dividends. As of the end of the second quarter, the company had $7.5 billion remaining under its share repurchase authorization. On August 26, 2024, the Board of Directors approved an additional $50.0 billion in share repurchase authorization, without expiration.
NVIDIA handed over a quarterly cash dividend of $0.01 per share on October 3, 2024, to all shareholders of record on September 12, 2024. On June 7, 2024, NVIDIA completed a ten-for-one forward stock split.
Nvidia’s 3rd Quarter FY25 financial results will be released on Wednesday 20, 2024 at 2:00 PM PT. How the stock price reacts to the results and guidance, remains to be seen.