Nvidia Q2 earnings preview: All eyes on guidance amid macro pressures
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Nvidia (NASDAQ:NVDA) is scheduled to announce Q2 earnings results on Wednesday, August 24th, after market close.
Early this month, the graphic chips designer preannounced weak Q2 revenue due to a shortfall in gaming-related revenue. Nvidia generated $6.7B in revenue, down 19% from a year ago, compared to expectations of $8.1B.
Its gaming business was the main culprit of the shortfall, as gaming revenue fell 44% sequentially and 33% year-over-year to $2.04B. Conversely, data center revenue rose 1% sequentially and 61% year-over-year to $3.81B.
Investment firm UBS also found that Nvidia and Advanced Micro Devices (AMD) have seen "consistently lower pricing" for their GPUs over the past few months, meaning that supply has caught up with demand, although the rate of decline has slowed down.
Over the last 3 months, EPS estimates have seen 0 upward revisions and 25 downward. Revenue estimates have seen 0 upward revisions and 24 downward. The consensus EPS Estimate is $0.50 (-52.08% Y/Y) and the consensus Revenue Estimate is $6.7B (+2.97% Y/Y), reflecting Nvidia's Q2 preannouncement.
Investors will be keeping a keen eye on Nvidia's Q3 guidance, with BofA Securities warning that the current Street consensus might not reflect the full-quarter of inventory correction in gaming/crypto products that began in late Q2.
Shares have dropped -42.93% YTD, higher than peers AMD, Intel (INTC) and Marvell (MRVL).

Over the last 2 years, NVDA has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.