Nvidia, the leading chip-maker with a market cap exceeding $3.3 trillion, is all set to announce its 3rd Quarter FY25 financial results on November 20, 2024. With its stock outperforming the tech-heavy Nasdaq 100 index and its peers in the “Magnificent 7” group, Nvidia has been a driving force behind this year’s market momentum.
Here’s a closer look at Nvidia’s recent performance, expectations, and market implications:
Exceptional Growth So Far
a) Stock Performance: Nvidia’s shares have skyrocketed over 180% in the past 12 months, trading around $140.
b) Q2 Highlights:
Revenue: $30.0 billion (up 15% QoQ and 122% YoY).
Data Center Revenue: $26.3 billion (up 16% QoQ and 154% YoY).
Earnings Per Share (EPS): Nvidia reported diluted EPS of $0.60 in Q1 and $0.67 in Q2, showcasing consistent growth.
Market Expectations for Q3 FY25
Revenue is expected in the $34.5 to $35 billion range, with guidance for Q4 projected at $36.5 to $37 billion.
Analysts predict an 81.9% YoY growth in earnings and an 81.1% rise in revenue for Q3.
Stock Buybacks and Dividends
Nvidia returned $15.4 billion to shareholders in H1 FY25 through share repurchases and dividends.
The company recently authorized an additional $50 billion for share buybacks, signaling strong confidence in its long-term prospects.
On October 3, 2024, it issued a quarterly cash dividend of $0.01 per share.
Challenges and Opportunities
Despite stellar growth, Nvidia’s stock faced pressure recently due to reports of overheating issues in its Blackwell AI servers. However, the market remains optimistic about its AI-driven future.
Why This Matters
Over the last five quarters, Nvidia has consistently beaten its revenue guidance by $2 billion. Its Q3 results are expected to set the tone for US stock market trends, particularly in the technology sector.
With its extraordinary growth trajectory and AI-driven innovation, Nvidia’s performance remains a critical factor in shaping market dynamics.
Stay tuned for the results announcement on November 20, 2024, at 2:00 PM PT, to see how Nvidia steers the market forward.
