Nvidia reports fiscal second-quarter results after Tuesday's close, with Wall Street looking for revenue of $92.17 billion and earnings of $2.10 a share. The chipmaker also faces a worldwide memory shortage that is pushing up component costs even as its new Vera Rubin AI systems begin shipping to customers.
Nvidia will report fiscal second-quarter results after the bell, with analysts polled by LSEG expecting earnings of $2.10 a share on $92.17 billion in revenue. That figure would mean revenue almost doubling from $46.7 billion a year earlier.
The stock has risen 14% as of Tuesday's close, slightly outperforming the Nasdaq, but that trails the pace of its prior three-year rally as investors have cooled somewhat this year. Competition is building from Advanced Micro Devices and Google, while a worldwide memory shortage weighs on costs.
Wall Street expects guidance for 83% growth
Investors are not bracing for a slowdown. Analysts expect Nvidia to guide to earnings of $2.38 a share on $104.2 billion in revenue for the third quarter, a jump of 83% from $57 billion a year earlier. The highest estimate among analysts polled by LSEG reaches $112.2 billion.
Memory costs squeeze the supply chain
Memory prices are soaring worldwide, a shortage Nvidia itself has partly driven through demand for high-performance HBM memory and large volumes of DRAM. Server DRAM prices rose 64% in the second half of last year. Trendforce expects a 260% jump in 2026, according to an estimate published this month. Nvidia said higher device prices already hurt demand for some consumer GPUs last quarter, though it spent $145 billion in the first quarter to secure the parts it needs. Analysts still expect gross margin to hold at 75%, the same level as the first quarter, even as the company builds inventory ahead of its Vera Rubin rollout.
Vera Rubin ships as Huang's financing push draws scrutiny
Nvidia's new Vera Rubin AI systems have started shipping to customers including Microsoft and OpenAI, and investors want to hear how the ramp is going. Huang has said he expects $1 trillion in sales through 2027 from current Blackwell chips and Vera Rubin combined.
Huang also announced a program with six leading financial firms that have pledged up to $500 billion in financing, as chips increasingly get treated as an investable asset. Morgan Stanley initiated credit coverage of Nvidia this week, and while the firm called the company's financing case supportive, it flagged the long-term risk as still hard to quantify.
Source: CNBC
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