Nvidia’s stock has retraced roughly 15% from its mid-May record, leaving investors scrutinizing the company’s upcoming fiscal second-quarter earnings report for signs of renewed momentum.
The Santa Clara-based chipmaker, a bellwether for artificial intelligence demand, is scheduled to release results after U.S. markets close on Aug. 27. Analysts anticipate revenue of $30.8 billion, up 76% from the same period last year, according to Refinitiv consensus estimates. Non-GAAP earnings per share are projected at $0.97, a 135% increase year-over-year.
The company’s data center revenue, driven by AI accelerators, is expected to reach $22.5 billion, nearly doubling from the prior-year quarter. Gaming revenue is forecast at $2.6 billion, while automotive and professional visualization segments are projected at $300 million and $1.4 billion, respectively.
Investors will closely examine gross margin trends, which have remained above 70% in recent quarters, and management’s outlook for the current quarter. Analysts at Wedbush estimate Nvidia’s data center revenue could grow to $25 billion in the current quarter, underscoring expectations for sustained AI infrastructure investment.
The stock’s recent pullback has erased about $800 billion in market value since its May peak, reflecting broader concerns over valuation and demand sustainability. Nvidia’s dominance in AI chips has also drawn regulatory scrutiny, with antitrust investigations in the U.S. and abroad adding a layer of uncertainty.
Any miss on revenue or guidance could exacerbate the decline, while a beat may reignite buying interest. The company’s ability to maintain its pricing power and expand into new AI-driven markets will be critical for long-term growth.
