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NVIDIA (NVDA - Free Report) , arguably the most important company in the world right now, is set to report its fiscal second-quarter 2025 results after the market’s close on August 28. The earnings could be the next big catalyst for the AI trade and the broader market.
Analysts are expecting $0.63 in EPS on $28.2 billion in revenues, up 133.3% and 109% year-over-year, respectively. For the past six quarters, the company has consistently beaten expectations on both the top and bottom lines, while also raising guidance.
Another Blowout Quarter for Data Center Revenue?
The King of AI is the biggest beneficiary of the massive spending by tech giants building out AI infrastructure. (MSFT), Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) , currently account for more than 40% of NVIDIA's revenues.
These giants spent over $100 billion combined in the first two quarters, and they’re not pulling back on spending anytime soon as the AI race heats up. A large part of this capital will be spent on AI infrastructure buildouts, including data centers powered by NVIDIA’s GPUs.
Does the Stock Look Expensive Now?
NVIDIA's shares have risen more than 165% this year, following a nearly 240% increase in 2023. They have rebounded strongly over the past two weeks but are still down about 10% from their record high. However, its valuation does not seem overstretched, as earnings are growing faster than its share price.
NVIDIA shares are currently trading at 48x forward earnings. Over the last five years, NVIDIA shares have traded as high as 106.3x forward estimates.
Can NVDA’s AI Chip Dominance Continue?
NVIDIA dominates the market for cutting-edge AI chips and is almost invincible in its field due to its CUDA software. Its advanced, full-stack accelerated computing platform ensures that it will not lose much market share in the next few years.
Any rival would first need to develop best-in-class hardware, software, and networking technology, and then gain access to a large share of TSMC's (TSM - Free Report) advanced manufacturing capabilities.
NVDA Single Stock ETFs
NVIDIA is a high-beta stock and could be particularly volatile around earnings. Any pullbacks could present attractive buying opportunities.
NVIDIA’s meteoric surge has drawn some investors to single-stock ETFs that aim to double its daily return. The GraniteShares 2x Long NVDA Daily ETF (NVDL) has $5.9 billion in assets, and the T-Rex 2x Long NVIDIA Daily Target ETF (NVDX) has gathered $732 million.
These instruments can be effectively used as short-term tactical trading tools before or after earnings. However, investors should remember that these products should be used only by those who closely monitor their portfolios.
To learn more, please watch the short video above.
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Here's How You Can Play NVIDIA's Earnings
NVIDIA (NVDA - Free Report) , arguably the most important company in the world right now, is set to report its fiscal second-quarter 2025 results after the market’s close on August 28. The earnings could be the next big catalyst for the AI trade and the broader market.
Analysts are expecting $0.63 in EPS on $28.2 billion in revenues, up 133.3% and 109% year-over-year, respectively. For the past six quarters, the company has consistently beaten expectations on both the top and bottom lines, while also raising guidance.
Another Blowout Quarter for Data Center Revenue?
The King of AI is the biggest beneficiary of the massive spending by tech giants building out AI infrastructure. (MSFT), Amazon (AMZN - Free Report) , Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) , currently account for more than 40% of NVIDIA's revenues.
These giants spent over $100 billion combined in the first two quarters, and they’re not pulling back on spending anytime soon as the AI race heats up. A large part of this capital will be spent on AI infrastructure buildouts, including data centers powered by NVIDIA’s GPUs.
Does the Stock Look Expensive Now?
NVIDIA's shares have risen more than 165% this year, following a nearly 240% increase in 2023. They have rebounded strongly over the past two weeks but are still down about 10% from their record high. However, its valuation does not seem overstretched, as earnings are growing faster than its share price.
NVIDIA shares are currently trading at 48x forward earnings. Over the last five years, NVIDIA shares have traded as high as 106.3x forward estimates.
Can NVDA’s AI Chip Dominance Continue?
NVIDIA dominates the market for cutting-edge AI chips and is almost invincible in its field due to its CUDA software. Its advanced, full-stack accelerated computing platform ensures that it will not lose much market share in the next few years.
Any rival would first need to develop best-in-class hardware, software, and networking technology, and then gain access to a large share of TSMC's (TSM - Free Report) advanced manufacturing capabilities.
NVDA Single Stock ETFs
NVIDIA is a high-beta stock and could be particularly volatile around earnings. Any pullbacks could present attractive buying opportunities.
NVIDIA’s meteoric surge has drawn some investors to single-stock ETFs that aim to double its daily return. The GraniteShares 2x Long NVDA Daily ETF (NVDL) has $5.9 billion in assets, and the T-Rex 2x Long NVIDIA Daily Target ETF (NVDX) has gathered $732 million.
These instruments can be effectively used as short-term tactical trading tools before or after earnings. However, investors should remember that these products should be used only by those who closely monitor their portfolios.
To learn more, please watch the short video above.