Nvidia(US:NVDA) First Shanghai Securities·2024-09-03 01:16Investment Rating - Target price set at $145 with a "Buy" rating [24][48] Core Insights - The company reported Q2 2025 revenue of $30 billion, a year-over-year increase of 122.4%, exceeding Bloomberg's consensus estimate of $28.8 billion [30] - GAAP diluted earnings per share (EPS) were $0.67, surpassing Bloomberg's consensus estimate of $0.61 [30] - The company generated free cash flow of $13.5 billion in the quarter, significantly up from $6 billion in the same period last year [9] Revenue and Profitability - Operating profit for the quarter was $18.6 billion, a year-over-year increase of 174.1%, with an operating margin of 62.1% [8] - Non-GAAP operating profit was $19.9 billion, up 156.4% year-over-year [8] - The company expects Q2 FY2025 revenue to grow by 79% year-over-year, with a midpoint guidance of $32.5 billion [10] Business Segments - Data center revenue reached $26.3 billion, a year-over-year increase of 154%, driven by a 162% increase in computing GPU revenue [12] - Gaming revenue for Q2 FY2025 was $2.9 billion, a 16% increase, supported by sales of the RTX 40 series [17] - Professional visualization revenue was $450 million, up 20% year-over-year, primarily due to AI and graphics use case demand [42] Strategic Developments - The company launched the new Blackwell platform, emphasizing enhanced AI computing capabilities [16] - The software business is expected to see significant growth, with annualized revenue nearing $2 billion, mainly from NVIDIA AI Enterprise [16] - The automotive segment's revenue increased to $350 million, a 37% year-over-year growth, with a total order value rising from $11 billion to $14 billion [20][43]