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All eyes are on Nvidia as it prepares to report its earnings. Here's what to expect

Nvidia has led the artificial intelligence boom to become one of the stock market’s biggest companies, as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems

Sarah Parvini
Wednesday 28 August 2024 05:01 BST
Off The Charts Nvidia
Off The Charts Nvidia (Copyright 2024 The Associated Press. All rights reserved)

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Nvidia has led the artificial intelligence boom to become one of the stock market’s biggest companies, as tech giants continue to spend heavily on the company's chips and data centers needed to train and operate their AI systems. The company is now worth over $3 trillion, with its dominance as a chipmaker cementing Nvidia’s place as the poster child of the AI industry ahead of the release of its latest financial results Wednesday.

Wall Street expects the company to report second-quarter adjusted earnings of 65 cents per share on revenue of $28.74 billion, more than double what it earned in the comparable quarter one year ago, according to FactSet. In the past three quarters, revenue has more than tripled on an annual basis, with the vast majority of growth coming from the data center business.

Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia’s specialized chips over the last year, but Wall Street is also looking for any indication that AI demand is waning.

The Santa Clara, California-based company carved out an early lead in AI applications race, in part because of founder and CEO Jensen Huang's successful bet on the chip technology used to fuel the industry. The company is no stranger to big bets. Nvidia’s invention of the graphics processor unit, or GPU, in 1999 helped spark the growth of the PC gaming market and redefined computer graphics.

Nvidia will release its quarterly earnings after the market closes Wednesday.

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