Los Angeles (Associated Press)
Nvidia has powered the artificial intelligence boom and become one of the stock market’s biggest companies, as tech giants continue to invest heavily in the company’s chips and the data centers needed to train and run their AI systems. The company’s market capitalization now exceeds $3 trillion, and the chipmaker’s dominance shows that Nvidia is solidifying its position as a leader in the AI industry ahead of its latest earnings report on Wednesday.
Wall Street expects the company to report second-quarter adjusted earnings of 65 cents a share on revenue of $28.74 billion, more than double what it saw in the same period last year, according to FactSet. Revenue has more than tripled year-over-year over the past three quarters, with most of the growth coming from its data-center business.
Demand for generative AI products that can write documents, create images and act as personal assistants has driven sales of Nvidia’s specialized chips over the past year, but Wall Street is also looking for signs that AI demand is fading.
The Santa Clara, California-based company built an early lead in the race for AI applications in part because founder and CEO Jensen Huang made a successful bet on industry-leading chip technology. The company has made some big bets: Nvidia’s invention of the graphics processor unit (GPU) in 1999 helped fuel the growth of the PC gaming market and redefined computer graphics.
Nvidia is scheduled to report quarterly earnings after the market closes on Wednesday.
