NVIDIA Earnings Preview: AI Chip Sales in Focus

Traders Expect Earnings Report to Move Stock

NVIDIA Corporation (NVDA) is set to release its second-quarter earnings report on August 29, 2024, after the market closes. Traders are expecting the report to have a significant impact on the company's stock price, with options market activity suggesting a potential move of 5% or more.

Key Metrics to Watch

Analysts will be paying close attention to the following key metrics in NVIDIA's earnings report:

• Revenue from AI chip sales
• Adjusted earnings per share
• Guidance for future quarters

AI Chip Sales a Key Driver of Growth

NVIDIA's AI chips are used in a wide range of applications, including data centers, autonomous vehicles, and gaming. The company has been a major beneficiary of the growing demand for AI technology, and its AI chip sales are expected to continue to be a key driver of growth in the coming quarters.

Analysts Expect Strong Results

Analysts are generally expecting a strong earnings report from NVIDIA. The consensus estimate for revenue is $28.74 billion, up 21% from a year ago. Adjusted earnings per share are expected to come in at 65 cents, up 25% from a year ago.

Risks to Consider

There are some risks to consider that could impact NVIDIA's earnings report and stock price.

• A slowdown in demand for AI chips due to economic uncertainty
• Increased competition from other chipmakers
• Supply chain disruptions

Overall, Positive Outlook

Despite these risks, the overall outlook for NVIDIA remains positive. The company is a leader in the AI chip market, and it is well-positioned to continue to benefit from the growing demand for AI technology.