NVIDIA’s Upcoming Q2 Earnings Preview

Deutsche Bank analysts provided their outlook on NVIDIA Corporation (NASDAQ:NVDA) ahead of the upcoming Q2 results, scheduled to be announced on Aug 24.

Following the company’s negative pre-announcement, the analysts believe the biggest questions heading into the earnings call are (1) How much of Data Center weakness was supply related, compared to the weaker demand, (2) Where/when do Gaming revenues bottom, and (3) Will any of the charges in the Q2 recur in the second half of the year (thereby impacting gross margins).

While much medicine was apparently taken in the Q2 (preliminary results below even the most bearish expectations), the analysts believe the buy-side is expecting the company’s Q3 guidance to be similarly weak, with many expecting the correction in Gaming to persist and skeptical of any recovery in Data Center.