Will Nvidia earnings meet expectations? Here is what street expects from Q2

Nvidia's share price fell over 1% on Wednesday evening ahead of its earnings release later today. The shares opened at $212 per share and hit an intraday low of $210 per share on Wednesday, and currently trade at $210.5 apiece at 8:15 pm. The chipmaker's earnings will provide major cues for the AI infrastructure and AI hyperscalers as they plan to spend roughly $700 billion in 2027 to address the rising computing demand.

However, investors remain on the sidelines and skeptical about the return on investments made by the hyperscalers as they struggle to generate tangible returns on their investments. Nvidia continues to remain the centre point of the AI-led boom in tech stocks. As AI-computing demand continues to explode, the demand for data centres is also increasing simultaneously, aiding strong demand for its GPUs and chips.

What to expect from NVIDIA earnings?

Investor and analyst estimates polled by NASDAQ 100 expect revenue to nearly double at $92.18 billion as compared to $46.7 billion in the previous year's same quarter. Similarly, the earnings per share are also expected to double from $1.05 per share to $2.09 per share. Data Centre, which remains the major revenue contributor to the total revenue, is expected to more than double to $86 billion as compared to $41.1 billion in the same period last year. Similarly, the gross margin is expected to expand by 230 bps to 75% as against 72.7% in the quarter ended June 2025.

Nvidia earnings snapshot

Nvidia earnings have exploded exponentially over the past three years. Nvidia’s Q2 2022 revenue stood at $6.7 billion, which further exploded to $13.5 billion in Q2 2023, $30 billion in Q2 2024 and $46.7 billion in Q2 2025. The exponential rise in revenue was largely driven by the data centre segment, which now contributes more than 90% of the total revenue.

The explosion in data centre revenue was triggered by the launch of Generative AI platforms like OpenAI’s ChatGPT in FY2024. The next phase of growth in FY2025-26 was driven by massive investments by AI-hyperscalers like Microsoft, Amazon, Meta, and Alphabet, which announced massive investments in cloud computing facilities for rising computing demand.

Consequently, the net-income has increased from $0.6 billion in Q2 of 2022 to $26 billion in Q2 of 2025 and expected to cross $50 billion mark in Q2 of 2026.

Is Nvidia fueling its own demand?

Earlier this month, Nvidia announced partnering with institutions like BlackRock, Blackstone, Brookfield and Goldman Sachs.to mobilise $500 billion for AI-related investments and data centres, power systems, and generative AI companies. The announcement received a muted response from investors, implying the company is funding its own future demand. Investors will closely monitor announcements on further investments and commentary around the overall demand for GPUs.