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With its earnings due after the closing bell on Wednesday, NVIDIA's second quarter could be its last in the current semiconductor up cycle to deliver triple digit earnings growth, as per data from LSEG. NVIDIA, whose fiscal year ends in January, is due to report its earnings for the second quarter of the year ending in January 2025. Heading into the release, the market is concerned about a purported delay of NVIDIA's latest Blackwell AI GPUs, with speculation suggesting that this impact will be minimal and revenue will be pushed forward by a quarter at the very worst.
NVIDIA To Mark 112.5% Revenue Growth In Fiscal Q2 Believe Analysts
NVIDIA's earnings for the second quarter of fiscal 2024, i.e., the year ago quarter for Wednesday's results, was the first in the current cycle in which the firm had marked a triple digit percentage revenue growth. Back then, the firm had brought in $13.5 billion in revenue, which marked a 101% growth over Q2 2023's $6.7 billion in revenue. AI GPU sales in the industry were in their early stages, and NVIDIA was also recovering from the post pandemic crunch in consumer GPU sales.
Now, as per data from the London Stock Exchange Group (LSEG), NVIDIA should earn $28.68 billion during its Q2 2025. When compared to the year ago quarter's $13.5 billion in revenue, this should mark 112.5% in annual growth. This growth comes as big ticket technology names the likes of Microsoft, Facebook parent Meta and Google parent Alphabet continue to fork out billions of dollars on artificial intelligence infrastructure in order to out compete each other.
After their second quarter earnings report. earlier this year, big tech firms committed to a cumulative $210 billion in capital expenditure, while Wall Street kept a watchful eye on the profits that they are earning from the new technology.
Crucially, analysts also expect that NVIDIA will guide $31.69 billion in revenue for its third quarter, for a 74.89% annual growth. If the firm meets this guidance, then it will be the first time since last year that NVIDIA's annual revenue growth sits below 100% or higher.
During fiscal Q3 2024, the firm earned $18.1 billion in revenue, which marked a strong acceleration over the second quarter results. After the 101% revenue growth in the second quarter, the third quarter put NVIDIA on steroids, as the $18.1 billion figure meant it had grown its sales by 206% over the year-ago quarter.
Even though they are among the final few quarterly results on Wall Street, NVIDIA's financials, due to feverish attention surrounding artificial intelligence, have set the tone for investing. With investors currently basking in the aftermath of Fed chair Jerome Powell's confirmation of an interest rate cut cycle, a beat over the revenue estimates will signal to Wall Street that at least the demand for artificial intelligence hardware is persisting in the industry.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
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