Nvidia's heads into earnings week with high expectations after sustained AI dominance

Nvidia’s second-quarter earnings, due this Wednesday, will land exactly two years after the AI boom kicked the company into a new ￰0￱ in late 2022, when OpenAI launched ChatGPT, Nvidia was mostly known for its gaming ￰1￱ then, the company has grown into the biggest name in AI infrastructure, with revenue up more than three times and profits quadrupled, according to ￰2￱ month, Nvidia became the first company in history to cross a $4 trillion market ￰3￱ stock is up 33% this year alone, ending last week at $177.99. Since the AI boom started, the company’s shares have gained ￰4￱ despite that massive rise, the rate of growth has ￰5￱ five straight quarters of triple-digit gains in 2023 and early 2024, Q1 growth this year dropped to 69%.

Analysts now expect the company to post 53% growth in Q2, hitting $45.9 billion in ￰6￱ drive Nvidia’s AI boom AI data centers now dominate Nvidia’s ￰7￱ Q1, 88% of the company’s total sales came from its data center ￰8￱ also reported that 34% of last year’s total revenue came from just three unnamed ￰9￱ company now makes up 7.5% of the entire S&P ￰10￱ late July, every other major tech firm reported earnings and updated their capital expenditure ￰11￱ result: combined spending of $320 billion this year on AI infrastructure and data centers , not counting ￰12￱ AI capex still climbing, Nvidia’s role stays ￰13￱ estimate the company takes in about half of total AI infrastructure ￰14￱ there are ￰15￱ Altman, OpenAI’s CEO, said last week, “Investors as a whole are overexcited about AI,” and called it a potential “bubble.” Wall Street is watching to see what Nvidia CEO Jensen Huang says on ￰16￱ sales spike while China questions grow The most important product line in Nvidia’s pipeline is ￰17￱ architecture includes standalone GPUs and full systems with 72 GPUs ￰18￱ said in May that Blackwell sales hit $27 billion, making up 70% of total data center revenue.

That’s up from $11 billion the quarter before. GPT-5 was trained on Nvidia’s earlier Hopper ￰19￱ expect even more demand as Blackwell rolls out ￰20￱ company warned last year that the limit wasn’t demand, but how many chips partners can ￰21￱ Ultra is scheduled to begin shipping in late 2025. Meanwhile, Nvidia denied reports from Asia that Rubin, its 2027 chip line, is already facing production ￰22￱ Huang has also been trying to manage the China ￰23￱ confirmed this month that Nvidia agreed to pay 15% of its China AI chip revenue to the ￰24￱ in exchange for export ￰25￱ deal covered the company’s H20 chip, which was designed for the Chinese ￰26￱ said he initially asked for 20%, but Jensen talked him ￰27￱ said in May that the H20 could have added $8 billion to Q2 ￰28￱ that was before the ￰29￱ license restrictions and China started pushing its cloud providers to use domestic chips like those from ￰30￱ a result, Nvidia excluded H20 from its Q2 guidance and is unlikely to include it in Q3 ￰31￱ analysts said including H20 could raise guidance by $2 to $3 ￰32￱ they expect the company to skip it, just like AMD did in early ￰33￱ is already working on a Blackwell-based AI chip for China , but it would still need Trump’s ￰34￱ of Nvidia’s big customers already posted solid earnings this ￰35￱ also plan to increase capex, which bodes well for Nvidia’s ￰36￱ pricing shows expectations of a 6% move either way after the report.

Also, the S&P 500 trades at about 22 times forward earnings, higher than its 10-year ￰37￱ trades at 34 times, below its own five-year average of 39. Still, the Street isn’t ￰38￱ the last week, at least nine analysts raised their price ￰39￱ average now sits at over $194, roughly 9% above Nvidia’s $178 close on ￰40￱ smartest crypto minds already read our ￰41￱ in? Join them .