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Nvidia (NASDAQ: NVDA) is set to announce its Q2 results for fiscal 2025 after the market closes on Wednesday. Investors are keenly watching to see if the company can sustain its rapid growth in the data center segment and how potential delays in the launch of its new Blackwell AI chip might affect future prospects.
Strong Revenue Growth Expected
Analysts are projecting Nvidia's revenue for Q2 2025 to reach $28.84 billion, more than double the $13.51 billion recorded in the same period last year. This surge is largely driven by the company's leadership in advanced computing technology, which is increasingly essential for AI applications.
The expected net income for this quarter is also anticipated to more than double, reaching $14.95 billion, compared to $6.19 billion a year ago. However, despite these impressive gains, earnings per share (EPS) are predicted to see a sharp decline to 59 cents from $2.48 in Q2 2024. This drop is primarily attributed to Nvidia's 10-for-1 stock split, which has significantly increased the number of shares outstanding.
Data Center Segment Continues to Shine
Nvidia's data center segment has been a standout performer, fueling the company's growth as demand for AI-powered solutions rises. In Q1 2025, the data center revenue reached a record high of $22.6 billion, surpassing the previous quarter's record. For Q2 2025, analysts are forecasting data center revenue to hit $25.19 billion, setting yet another record and more than doubling the year-ago figures.
This robust performance in the data center segment underscores Nvidia's dominance in the AI market, as its chips are integral to the infrastructure needed to power AI models and applications.
Concerns Over Blackwell Chip Delays
Despite Nvidia's strong performance, the company has faced some headwinds recently. Reports of delays in the production of its next-generation Blackwell AI chip caused Nvidia's stock to drop earlier this month. However, Nvidia has reassured investors that production is still on track to ramp up in the second half of the year as originally planned.
Some analysts believe that the market's reaction to these reports may have been exaggerated. Raymond James analysts, for example, have suggested that the delays might have a "modest" impact at most and could even lead to increased demand for Nvidia's existing chips.
Stock Performance and Outlook
Nvidia's stock has been on a tear this year, more than doubling in value to $125.87 in early trading on Monday.
This impressive run reflects investor confidence in the company's ability to maintain its leadership in the AI and data center markets, even in the face of potential challenges.
As Nvidia prepares to report its Q2 2025 earnings, all eyes will be on the data center segment's performance and any updates regarding the Blackwell chip. Investors will be eager to see if Nvidia can continue its remarkable growth trajectory and manage any potential hurdles along the way.
Estimated Q2 2025 Financials
| Metric | Q2 2025 Estimate | Q1 2025 | Q2 2024 |
|---|---|---|---|
| Revenue | $28.84 billion | $26.04 billion | $13.51 billion |
| Diluted Earnings Per Share | 59 cents | $5.98 | $2.48 |
| Net Income | $14.95 billion | $14.88 billion | $6.19 billion |
As Nvidia gears up for its Q2 2025 earnings release, the focus will be on whether the company can continue its impressive performance in the data center segment while navigating any potential delays with the Blackwell chip.
