$NVDA Q2 Earnings to Test Resurgent AI Trade

Nvidia is set to report second-quarter earnings, with Wall Street expecting adjusted EPS of $2.09 on revenue of $92 billion, according to Bloomberg analyst consensus estimates. That would mark a 96% year-over-year revenue jump and continued quarter-over-quarter acceleration. The report comes as chip stocks broadly struggle to hold gains over the past month following steep declines in July tied to fears over AI investment returns.
Under Nvidia's updated reporting framework, Data Center revenue is expected to top $85.4 billion, up 107% year-over-year, with Hyperscaler revenue projected at $43.5 billion and ACIE (Industrial and Enterprise) sales at $41.7 billion. Nvidia continues to derive most of its revenue from hyperscalers such as $AMZN, $GOOGL, and $MSFT, though each is developing its own chips or selling to third-party customers, a potential future headwind.
The company also continues expanding its AI ecosystem partnerships, including a deal with BlackRock, Blackstone, KKR, Apollo, Brookfield, and Goldman Sachs to establish a $500 billion capital pool to securitize Nvidia's GPUs, as well as backing for SB Energy and OpenAI's roughly $150 billion, 8-gigawatt data center project in Ohio.