Categories Analysis, Technology

Weakness in data center biz unlikely to recede for NVIDIA in Q2

Semiconductor giant NVIDIA Corporation (NASDAQ: NVDA) has seen its shares gain 11.7% so far this year, after going through its own share of ups and downs. NVIDIA underperforms the 35% growth recorded by SPDR S&P Semiconductor and 25% growth registered by iShares S&P Semiconductor.

The stock had touched a peak around the last week of April, but the see-sawing US-China relations have pulled it down since then. The company has also been battered by the weakness in the gaming and data center GPUs, a factor that is not likely to recede when the company reports second-quarter 2020 results after the closing bell on Thursday, August 15.

nvidia stock
Image by JacekAbramowicz on Pixabay

The market expects second-quarter earnings to decline to $1.14 per share from $1.94 per share a year ago. Meanwhile, revenues are projected to fall 18.5% to $2.55 billion. In the trailing four quarters, the chipmaker has surpassed bottom-line estimates thrice.     

In the first quarter, the company surprised investors with an earnings beat and revenues that met the market consensus, due to better-than-expected to rebound in the gaming GPU market. However, citing lack of clarity in the demand for data center GPUs, the refrained from providing a full-year outlook.

It may be noted that the gaming segment accounted for almost half of Nvidia’s revenues in Q1, while the data center business was the second-largest, accounting for more than a quarter of total revenues. This was despite the gaming segment witnessing a 39% year-over-year decline and a 10% fall in the data center unit.

NVIDIA underperforms the 35% growth recorded by SPDR S&P Semiconductor and 25% growth registered by iShares S&P Semiconductor.

READ: Dropbox Q2 earnings: Slow growth in revenue, ARPU disappoint investors

A repeat of better-than-expected gaming rebound like that witnessed in Q1 cannot be ruled out in Q2. Normalization of inventory levels could relatively keep the segment stable, ahead of the launch of its new gaming cards. However, much of this growth could be offset by the data center unit.

During the earnings conference call, keep a close track of any updates relating to the automotive unit, as autonomous driving and artificial intelligence continue to evolve at a rapid pace.  

Nvidia has a Moderate Buy rating in the market with a 12-month average price target of $187.43, a 23% upside from Monday’s trading price.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Target (TGT): A look at some of the challenges faced by the retailer in 3Q24

Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and

Comments

  1. Pingback: y2mate
  2. Pingback: y2mate
  3. Pingback: image color picker
  4. Pingback: rajabandarq
  5. Pingback: Young Arab Voices
  6. Pingback: engineering majors
  7. Pingback: College systems
  8. Pingback: faculty of dental
  9. Pingback: Ecstasy
  10. Pingback: sudoku
  11. Pingback: low row machine
  12. Pingback: ikaria juice
  13. Pingback: Fiverr Earn
  14. Pingback: Fiverr Earn
  15. Pingback: Fiverr Earn
  16. Pingback: Fiverr Earn
  17. Pingback: fiverrearn.com
  18. Pingback: fiverrearn.com
  19. Pingback: fiverrearn.com
  20. Pingback: endopump buy
  21. Pingback: TMS System
  22. Pingback: clima hoy
  23. Pingback: springerdoodles
  24. Pingback: aussie doodle
  25. Pingback: crypto news
  26. Pingback: micro frenchie
  27. Pingback: Samsung phone
  28. Pingback: future university
  29. Pingback: future university
  30. Pingback: future university
  31. Pingback: what is seo
  32. Pingback: wix marketplace
  33. Pingback: Fiverr
  34. Pingback: french bulldog
  35. Pingback: Lean
  36. Pingback: Warranty
  37. Pingback: FUE
  38. Pingback: FUE
  39. Pingback: Classic Books 500
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: Streamer
  44. Pingback: Sex Australia
  45. Pingback: partners
  46. Pingback: neuro rise
  47. Pingback: FiverrEarn
  48. Pingback: FiverrEarn
  49. Pingback: live sex cams
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: FiverrEarn
  57. Pingback: FiverrEarn
  58. Pingback: Kuliah Termurah
  59. Pingback: FiverrEarn
  60. Pingback: FiverrEarn
  61. Pingback: cheap sex cams
  62. Pingback: canine probiotics
  63. Pingback: french bulldog buy
  64. Pingback: live sex cams
  65. Pingback: rare breed-trigger
  66. Pingback: 늑대닷컴
  67. Pingback: Slot Fantasi
  68. Pingback: One Peace AMV
  69. Pingback: allgame
  70. Pingback: 918kiss
  71. Pingback: หวย24
  72. Pingback: pg slot
  73. Pingback: cybersécurité
  74. Pingback: Raahe Guide
  75. Pingback: health supplements
  76. Pingback: megagame
  77. Pingback: electronic visa
  78. Pingback: 35 whelen ammo
  79. Pingback: itsMasum.Com
  80. Pingback: ItMe.Xyz
  81. Pingback: MasumINTL
  82. Pingback: itme.xyz
  83. Pingback: itme.xyz
  84. Pingback: ItMe.Xyz
  85. Pingback: Bulk URL Shortener
  86. Pingback: itme.xyz

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top