Overview: Nvidia’s Quarterly Results
Expectations vs. Reality
- Revenue Growth: Analysts had expected a revenue growth of 66 percent compared to the second quarter of 2024, which would correspond to revenue of about 43 billion US dollars. In the same quarter last year, revenue was approximately 30 billion US dollars.
- Profit Growth: For profit, an increase of about 40 percent compared to the previous year’s quarter was forecast, with a profit target of around 16.6 billion US dollars.
- Actual Results: The official numbers confirmed or exceeded these expectations – details on the exact values have not yet been fully released, but it was already clear in advance that Nvidia once again performed above average.
Market Reaction
The positive surprise led to further appreciation of the stock. Many analysts continue to recommend buying the stock; the average price target according to Visible Alpha is about 164 US dollars per share – which represents an additional increase of around 25 percent compared to the current level.
Significance for Investors
Why is this important?
- Industry Leader: Nvidia is one of the key players in the semiconductor and artificial intelligence (AI) fields. The demand for AI chips remains unbroken.
- Growth Driver: Despite warnings of declining growth rates, Nvidia was once again able to achieve strong increases.
- Signaling Effect: Positive results at Nvidia often also impact other tech stocks and can contribute to an overall positive sentiment in the markets.
Context: Historical Development
| Period | EPS (USD) | Info |
|---|---|---|
| Q1 FY2024 | 0.082 | |
| Q2 FY2024 | 0.248 | |
| Q3 FY2024 | 0.371 | |
| Q4 FY2024 | 0.493 | |
| Q1 FY2025 | 0.598 | |
| Q2 FY2025 | – *(not finalized yet)* |
The table shows a clear upward trend in earnings per share (EPS) in recent years – an indication of the company’s sustained profitability.
Conclusion
Nvidia’s recent quarterly results once again confirm the company’s strong position in the technology sector. Growth remains robust despite high expectations from analysts and investors. For individual investors, these numbers underscore both the potential and risks of investing in this sector: high volatility continues to stand against strong performance.