Nvidia (NASDAQ:) to Report Q2 Fiscal 2025 Earnings: Blackwell Chip Launch Updates
Nvidia, a key player in the AI boom, is set to report its second-quarter earnings for fiscal 2025 next week. Investors are eagerly awaiting updates on the next-generation Blackwell (BW) chip launch, amid rumors of possible delays.
Analysts from KeyBanc Capital Markets suggest that there may be a one-quarter delay in the Blackwell chip launch due to performance challenges and a respin. However, they believe this delay will not impact near-term results and guidance, as higher Hopper GPU bookings are expected to fill the gap.
Despite the Blackwell delay, Nvidia is expected to focus on ramping up the B200 for hyperscalers and introducing a lower-cost, performance-optimized B200A GPU for enterprise customers. Analysts predict strong beat-and-raise results driven by robust demand for Hopper GPUs.
While the GB200 ramp has been affected, shipments of NVL36/72 are still expected in the fourth fiscal quarter. Analysts maintain their revenue and EPS estimates for FY26, believing that Nvidia's stock is undervalued at current levels.
Raymond James analysts also anticipate a strong performance from Nvidia, citing continued strength in AI infrastructure builds. They expect any delays in Blackwell to benefit Hopper GPUs and drive upside for gross margins in the short term.
Raymond James highlights the Spectrum-X Ethernet switch as a key revenue driver for Nvidia, independent of the Blackwell ramp. Despite the risk of customer spending pausing due to delays, analysts remain confident in Nvidia's execution capabilities.
Looking ahead, Citi analysts forecast a new 52-week high for Nvidia stock post-earnings, driven by higher consensus estimates and positive comments from Nvidia's management regarding Blackwell.
In conclusion, investors can expect Nvidia to deliver strong earnings results despite potential delays in the Blackwell chip launch. The company's focus on Hopper GPUs and other product offerings is expected to drive revenue growth and potentially boost stock performance. It is recommended to keep an eye on Nvidia's management commentary and market indicators for further insights into the company's future prospects.