The day has finally arrived! It's the Nvidia Corporation (NASDAQ: NVDA) earnings release day.
The US technology giant is scheduled to report its second-quarter (2Q FY25) earnings tonight on 28 August.
This should be an important event for many reasons. And it may be more so if you own any of the ASX exchange-traded funds (ETF) we are going to discuss.
Let's jump in to see what to expect!
What ASX ETFs have exposure to Nvidia stock?
The following ASX ETFs have a relatively large holding in Nvidia shares. So, if you own any of these, expect to see some unit price movements based on tonight's revelations.
Each ETF's holding in Nvidia shares as of 27 August are:
- Betashares Nasdaq 100 ETF (ASX: NDQ) has 9.1% of its assets invested in Nvidia
- Global X Semiconductor ETF (ASX: SEMI) has 10.9% of its assets invested in Nvidia
- Global X US 100 ETF (ASX: U100) has 11% of its assets invested in Nvidia
Street expectations
Three months ago, when the company reported its 1Q FY25 results, management guided for second-quarter revenue of US$28 billion. If achieved, this will indicate annual sales growth of 107%.
Nvidia has a history of beating its guidance. With this background, it is no surprise that Wall Street analysts predict that Nvidia's revenue and profits will be even better than the company had guided for.
Let's compare the street expectations to management guidance, as my colleague Beth highlighted.
| (Unit: US dollars) | Q2 FY24 result | Management guidance for 2Q FY25 | Wall Street's consensus estimate for 2Q FY25 |
| Revenue | $13.51 billion | $28 billion | $28.68 billion |
| Adjusted earnings per share (EPS) | $0.27* | $0.622** | $0.64 |
Hints from previous big tech earnings
As the race to artificial intelligence (AI) heats up, big technology companies are increasing their capital investment in this area.
Nearly all big companies, including Microsoft, Alphabet, Meta, Amazon, and Tesla, emphasised the importance of AI and said they would increase spending on AI infrastructure, specifically data centres. It is no secret that a large chunk of these investments flow into Nvidia products.
Can Nvidia continue its dominance in this critical industry? All eyes will be on whether the company can continue beating heightened investor expectations.
