Nvidia is set to announce its fiscal second-quarter earnings, reflecting the significant surge in its stock price primarily driven by the booming demand for artificial intelligence (AI) applications. Analysts predict that the company’s revenue will have increased by 67% in comparison to the previous year, primarily due to the insatiable demand for graphics processing units (GPUs) utilized in generative AI services. Investors are eagerly waiting to see if Nvidia’s momentum will continue, with third-quarter revenue expected to exceed 110% of the prior year.
CEO Jensen Huang has positioned Nvidia as a central player in the AI industry, highlighting the “surging demand” the company has experienced. However, Nvidia’s soaring stock price has increased expectations for substantial growth in both revenue and earnings to justify its valuation of over $1 trillion, exceeding that of Tesla and Amazon. While Nvidia’s gaming revenue is expected to rise by 16% from the previous year, its Datacenter group, responsible for AI chips, is projected to see a significant revenue increase of 111%. Challenges such as supply constraints and export restrictions imposed by the U.S. on Nvidia in the Chinese market may be addressed during the earnings call.