NVIDIA Stock Could Pull Back in September, But Don't Bet on It

Core Insights - NVIDIA's stock price may experience a pullback in September, but the recent Q2 results and guidance do not support this as a strong possibility [1] - The long-term outlook for NVIDIA remains positive, with expectations of maintaining leadership in semiconductors and AI, alongside robust double-digit revenue and earnings growth through the middle of the next decade [2] Financial Performance - NVIDIA reported a 56% increase in revenue, significantly surpassing consensus estimates, and issued strong guidance for future performance [4] - The company experienced growth across all end-markets, with computing and graphics growing over 50%, and data center and networking growing by 56% and 98%, respectively [6] - Operating income grew by 51%, net income by 52%, and adjusted earnings by 54%, exceeding MarketBeat's reported consensus [8] Cash Flow and Balance Sheet - Cash flow remains robust, with a 64% year-over-year increase in cash balance, totaling approximately $56 billion, which is more than a full quarter of revenue [9] - The company plans to return $24.3 billion in capital during the first half of 2025, reflecting a 20% increase in assets and equity [11] - Share repurchases are expected to continue at a similar pace, supported by a new authorization worth $60 billion [12] Market Outlook - Guidance provided by NVIDIA will be crucial for stock price movements for the remainder of the year, with Q3 guidance not including potential sales to China [10] - Despite a mixed stock price reaction post-earnings release, critical support levels remain intact, indicating potential for future stock price advancement [13][14]