NVIDIA Earnings Wrap Up Strong Mag 7 Reporting Cycle

With NVIDIA NVDA finally delivering its results, we’ve now heard from the entire Magnificent Seven group this earnings cycle. The release again reflected one of the most important of the period, with its results similarly reflecting the final hurdle of the broader Q2 earnings season.

Growth as a whole for the Mag 7 group in the Q2 cycle was stellar, though it’s worth remembering that the growth rates did benefit in a huge way from an unrealized gain on Alphabet’s SpaceX stake.

NVIDIA Earnings

NVIDIA delivered another blowout quarter, with its recent results comfortably clearing already high expectations. Revenue surged 106% year over year to $96.2 billion, whereas adjusted EPS jumped 120% to $2.22. Both items cleared our consensus expectations, reflecting the AI-favorite’s fifth consecutive double-beat.

Unsurprisingly, Data Center remained the highlight of the release again. Data Center revenue totaled $89.0 billion, up a triple-digit 117% year over year and 18% sequentially, handily clearing our consensus estimate of roughly $85.1 billion.

CEO Jensen Huang said demand is accelerating as more frontier AI labs, startups, and enterprises scale computing infrastructure, with its next-generation Vera Rubin platform now in full production. Simply put, the AI spending boom remains alive and well, with NVIDIA firmly planted at the center of it.

The stock maintains a favorable Zacks Rank #2 (Buy), with EPS revisions expected to remain on a bullish trajectory following the favorable release. Overall, the stock continues to reflect one of the strongest bets on the continued AI craze, underpinned by red-hot demand that isn’t going to slow anytime soon.

Other Record-Breaking Mag 7 Results

Apple’s AAPL results this earnings season reflected its strongest June-quarter period ever, with quarterly revenue of $109.4 billion growing 16% year-over-year. Adjusted EPS came in at $2.02, growing an even stronger 29% from the year-ago period.

Apple also reported double-digit revenue growth across iPhone, Mac, and Services, with similar gains in every geographic segment. Its installed base of active devices also reached an all-time high across its major product categories.  

As usual, the iPhone reflected the mega-cap tech giant’s biggest source of revenue, with sales coming in at $54.3 billion and growing by 21.6% year-over-year.

Microsoft MSFT similarly posted strong results this earnings cycle, with sales growing 18% YoY and earnings growing 23% YoY. Notably, Microsoft delivered favorable Intelligent Cloud results, a key benchmark that has been under a magnifying glass amid the billions it’s been investing in AI infrastructure.

Microsoft’s Intelligent Cloud results include Azure, its cloud computing platform that provides AI computing power to businesses. Intelligent Cloud revenue came in at $39.3 billion, beating our consensus estimate handily and growing 32% YoY. The growth rate here is mightily important from a sentiment standpoint, showing an acceleration relative to recent periods.

Bottom Line

NVIDIA NVDA capped off the reporting cycle for the beloved Magnificent Seven group, whose results again proved the AI frenzy remains healthy and well. Several other members of the group, including Microsoft MSFT and Apple AAPL, similarly posted strong results, though AAPL shares did face pressure following its release.

That said, all three remain top-tier stocks, with their cash-generating capabilities largely unmatched.

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This article originally published on Zacks Investment Research (zacks.com).

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