NVIDIA flags gross margin dip in Q3 forecast despite blowout data center quarter
NVDA•Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $96.22 bln | $92.17 bln (40 Analysts) |
| Q2 Adjusted EPS | Beat | $2.22 | $2.10 (39 Analysts) |
| Q2 EPS | $2.46 | ||
| Q2 Net Income | $59.69 bln | ||
| Q2 Gross Margin | 75% | ||
| Q2 EBIT | $63.73 bln |
Result drivers
- AI infrastructure demand - CEO Jensen Huang said accelerating demand for AI infrastructure and a global buildout of AI labs and startups drove results
- Data center growth - Data center revenue rose 117% yr/yr, driven by ramp-up of NVIDIA Vera Rubin platform and adoption by major cloud partners
- Strategic partnerships - Co announced partnerships to mobilize over $500 bln in third-party capital for AI infrastructure buildout, subject to definitive agreements
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 60 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the semiconductors peer group is "buy"
- Wall Street's median 12-month price target for NVIDIA Corporation is $300.00, about 40.8% above its August 25 closing price of $213.05
