Nvidia Inc. (NVDA)

Q2 numbers

Nvidia reported Q2 numbers tonight.

The company beat expectations but the stock is trading lower in after-market trading 

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

For Q2 fiscal 2025, earnings per share of $0.67 beat estimates of $0.64.

The all-important Datacentre revenue was a record $26.3 billion, up 154% (y/y) ahead of the consensus $25 billion.

Growth 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 Blackwell AI chips to customers during Q2. This put to rest fears of a major delay of Blackwell.  The company anticipates Blackwell production ramp in Q4 2024 with it expecting to ship “several billion dollars” in Blackwell revenue during that quarter.

“NVIDIA achieved record revenues as global datacentres 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.

Margins fell a little (q/q) but were higher (y/y). 

Conclusion

Nvidia beat forecasts on all metrics and the outlook for Q3  of $ 32.5bn beat expectations.  As we await the post-earnings call, the stock is trading 4% lower in post market trading.