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Gaming & Other Key Estimates for Nvidia's (NVDA) Q2 Earnings
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Shares of Nvidia (NVDA - Free Report) dipped 0.90% during regular trading hours Wednesday, just one day before the chipmaker releases its quarterly financial results. So let’s see what investors should expect from Nvidia’s second quarter after the closing bell today, including its key gaming and datacenter units.
Overview
Nvidia officially unveiled its much-anticipated, eighth-generation GPU architecture called Turing on Monday after a nearly two-year wait. The company’s Turing line brings ray tracing to real-time graphics. “Turing is Nvidia’s most important innovation in computer graphics in more than a decade,” founder and CEO Jensen Huang said at a conference in Vancouver.
“Hybrid rendering will change the industry, opening up amazing possibilities that enhance our lives with more beautiful designs, richer entertainment, and more interactive experiences. The arrival of real-time ray tracing is the Holy Grail of our industry.”
Nvidia’s new GPUs will be available in the fourth quarter, which means that the state-of-the-art chips won’t impact its current quarter. But even without these new chips, Nvidia’s business is strong, as its gaming division helps fuel some of the multibillion-dollar industry. Plus, Nvidia’s datacenter unit has quickly expanded, with clients that include Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , and Alphabet (GOOGL - Free Report) .
Q2 Outlook
Nvidia is expected to see its adjusted quarterly earnings skyrocket 81.2% to reach $1.83 per share, based on our current Zacks Consensus Estimate. Meanwhile, the firm’s overall Q2 revenues are projected to jump by over 39% to hit $3.11 billion.
These top and bottom line estimates are beneficial, yet we also need to know how Nvidia’s individual business segments are projected to perform since they could easily dictate how NVDA’s stock might perform following today's earnings release and beyond. Luckily, we can turn to our exclusive non-financial metrics consensus estimate file to prepare.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Gaming
Despite all of the love for Nvidia’s growing datacenter business, the company still relies heavily on its core gaming unit. NVDA’s gaming division is projected to soar by over 48% to hit $1.76 billion, based on our NFM estimates. Gaming looks poised to account for over 56% of the company’s total projected Q2 revenues, based on our estimates.
Last quarter, the company’s gaming revenues reached $1.72 billion, which marked a roughly 68% surge from the prior-year period’s $1.03 billion.
Datacenter
Moving on, Nvidia’s datacenter business is projected to hit $760.6 million, which would represent an impressive 83% climb from the $416 million the company reported in the year-ago quarter. NVDA’s datacenter unit would account for just less than 24% of total company revenues based on our estimates.
Investors should note that last quarter, Nvidia’s datacenter unit revenues jumped 71% to $701 million.
Professional Visualization
Nvidia’s third-largest business unit is professional visualization. Last quarter, professional visualization saw its revenues climb by 22% to reach $251 million.
The business is projected to report Q2 revenues of $260 million, which would mark an approximately 10.6% surge from the $235 million the company reported in the year-ago period. Professional visualization is set to account for just over 8% of NVDA’s quarterly revenues, based on our projections.
Lastly, the company’s smallest unit, its automotive division, is projected to see its quarterly revenues reach $147.8 million, which would mark a roughly 4% climb.
Nvidia is set to release its second-quarter financial results after the closing bell today.
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Gaming & Other Key Estimates for Nvidia's (NVDA) Q2 Earnings
Shares of Nvidia (NVDA - Free Report) dipped 0.90% during regular trading hours Wednesday, just one day before the chipmaker releases its quarterly financial results. So let’s see what investors should expect from Nvidia’s second quarter after the closing bell today, including its key gaming and datacenter units.
Overview
Nvidia officially unveiled its much-anticipated, eighth-generation GPU architecture called Turing on Monday after a nearly two-year wait. The company’s Turing line brings ray tracing to real-time graphics. “Turing is Nvidia’s most important innovation in computer graphics in more than a decade,” founder and CEO Jensen Huang said at a conference in Vancouver.
“Hybrid rendering will change the industry, opening up amazing possibilities that enhance our lives with more beautiful designs, richer entertainment, and more interactive experiences. The arrival of real-time ray tracing is the Holy Grail of our industry.”
Nvidia’s new GPUs will be available in the fourth quarter, which means that the state-of-the-art chips won’t impact its current quarter. But even without these new chips, Nvidia’s business is strong, as its gaming division helps fuel some of the multibillion-dollar industry. Plus, Nvidia’s datacenter unit has quickly expanded, with clients that include Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , and Alphabet (GOOGL - Free Report) .
Q2 Outlook
Nvidia is expected to see its adjusted quarterly earnings skyrocket 81.2% to reach $1.83 per share, based on our current Zacks Consensus Estimate. Meanwhile, the firm’s overall Q2 revenues are projected to jump by over 39% to hit $3.11 billion.
These top and bottom line estimates are beneficial, yet we also need to know how Nvidia’s individual business segments are projected to perform since they could easily dictate how NVDA’s stock might perform following today's earnings release and beyond. Luckily, we can turn to our exclusive non-financial metrics consensus estimate file to prepare.
The Zacks Consensus NFM file contains detailed estimate data for business segment metrics and non-financial metrics reported by companies. The data is acquired from digest and contributing broker models and includes the independent research of expert stock market analysts.
Gaming
Despite all of the love for Nvidia’s growing datacenter business, the company still relies heavily on its core gaming unit. NVDA’s gaming division is projected to soar by over 48% to hit $1.76 billion, based on our NFM estimates. Gaming looks poised to account for over 56% of the company’s total projected Q2 revenues, based on our estimates.
Last quarter, the company’s gaming revenues reached $1.72 billion, which marked a roughly 68% surge from the prior-year period’s $1.03 billion.
Datacenter
Moving on, Nvidia’s datacenter business is projected to hit $760.6 million, which would represent an impressive 83% climb from the $416 million the company reported in the year-ago quarter. NVDA’s datacenter unit would account for just less than 24% of total company revenues based on our estimates.
Investors should note that last quarter, Nvidia’s datacenter unit revenues jumped 71% to $701 million.
Professional Visualization
Nvidia’s third-largest business unit is professional visualization. Last quarter, professional visualization saw its revenues climb by 22% to reach $251 million.
The business is projected to report Q2 revenues of $260 million, which would mark an approximately 10.6% surge from the $235 million the company reported in the year-ago period. Professional visualization is set to account for just over 8% of NVDA’s quarterly revenues, based on our projections.
Lastly, the company’s smallest unit, its automotive division, is projected to see its quarterly revenues reach $147.8 million, which would mark a roughly 4% climb.
Nvidia is set to release its second-quarter financial results after the closing bell today.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>