Nvidia is set to report its second-quarter earnings on Wednesday, with expectations that revenue will more than double.
The company’s stock has soared by over 150% this year, driven by high demand for its AI chips.
Investors will closely watch the report, as any deviation from Wall Street’s expectations could significantly impact the broader AI sector.
Nvidia’s stock is currently valued at about 37 times its forward earnings, higher than the average for major tech companies.
Despite a strong performance, concerns about potential production delays and high expectations have caused fluctuations in its stock price.
Recent issues with Nvidia’s next-generation AI chips and potential cost increases from its manufacturing partner may also affect future growth.
In addition to financial performance, Nvidia’s report will provide insight into its AI processors for the Chinese market, where sales of its advanced chips are restricted.
The company also faces scrutiny over its business practices, including possible antitrust issues related to its chip sales and bundling strategies.
(Reuters)