BlockBeats news, August 27, after the close of today's U.S. stock market, Nvidia will announce its second-quarter financial report, with the market closely watching its movements in the U.S.-China AI competition, chip supply and demand relationship, and investments from hyperscale customers. The financial report also affects the entire stock market and the trend of the underlying artificial intelligence market. According to market data, Nvidia's current intraday increase is 0.03%, and Nvidia concept stock CoreWeave is active, currently up nearly 5%.
Before the financial report is released, investors have generally believed that the performance will exceed expectations. According to FactSet data, Nvidia is expected to announce second-quarter revenue of $46.05 billion, higher than the $45 billion guidance given in the previous quarter, with an expected earnings per share of $0.95 and a net profit anticipated to be $23.4 billion. Data center revenue is expected to reach $41.34 billion, a year-on-year increase of 57%. Although this is a strong growth rate, it is lower than the 73% growth rate Nvidia reported in its most recent financial report.
Piper Sandler analyst Harsh Kumar stated that Nvidia's guidance on its Chinese business will be the core of Wednesday's financial report. Nvidia's chips are at the center of the tech arms race. Trump announced that the U.S. will take a 15% share from Nvidia's sales of chips to China, while local Chinese companies are trying to avoid using Nvidia's H20 chips. There are reports that Nvidia has suspended the production of H20 chips. As China strives to strengthen its domestic chip industry, whether Nvidia can generate revenue from the Chinese market will be a key indicator of how much technological advantage the U.S. holds.
In addition, hyperscale customers, which are companies building AI infrastructure, have been continuously raising their capital expenditure expectations and purchasing Nvidia's GPUs in large quantities. These companies' multi-billion dollar budgets are undoubtedly favorable for Nvidia, but last week's tech giant-led stock market sell-off has raised concerns among some investors about the sustainability of this large-scale investment. In Nvidia's first-quarter financial report, 30% of the company's revenue came from only two customers, indicating a high customer concentration. Nevertheless, analysts remain optimistic about the spending of hyperscale customers, believing they are fully sprinting towards artificial general intelligence (AGI) and have a clear spending plan, and that this investment can last for at least a few more years.