Mizrahi Tefahot Analysis: What to Expect from Nvidia's August 26 Report
Uzi Levi, Director of Securities Research at Mizrahi Tefahot Bank, provides a special analysis ahead of the chip giant's results. Will a strong report satisfy investors, what is the outlook for Blackwell, and how will it impact the market?
Technology giant Nvidia will publish its financial results for the second quarter on Wednesday, after the close of trading on Wall Street. This is the central event of the reporting season, as the company stands at the heart of the global investment wave in artificial intelligence infrastructure.
Market expectations are particularly high: the consensus stands at revenue of approximately 91.9 billion dollars and an adjusted profit of 2.08 dollars per share — a sharp growth of 96% in revenue and 98% in profit compared to the corresponding quarter. Since Nvidia's official forecast was 91 billion dollars, the market is already pricing in results better than the company's own guidance. This means that a positive report alone may not be enough, as investors are looking for a significant surprise.
Uzi Levi, Director of Securities Research at Mizrahi Tefahot Bank, notes that the main test will be the demand for AI systems, especially for the new Blackwell architecture, alongside the company's ability to maintain an adjusted gross profit margin of about 75%.
Investors will closely monitor supply chain pace, the development of competition from other tech giants, and especially the forecast for the next quarter, for which the market expects revenue exceeding 103 billion dollars. Ultimately, the market is not questioning the growth itself, but rather the ability to maintain this exceptional pace. The options market is pricing in a volatility of about 6% for the stock around the report, which will affect the entire AI sector.
