Nvidia earnings report to be released soon, Wall Street focuses on the direction of the AI market

BlockBeats News, August 27 — Nvidia will release its Q2 financial report after the US stock market closes today. The market is closely watching its moves in the US-China AI competition, chip supply and demand, and investments from hyperscale clients. The financial report will also impact the overall stock market and the underlying AI sector. According to market data, Nvidia's current intraday increase is 0.03%, and Nvidia concept stock CoreWeave is active, currently up nearly 5%.

Before the financial report is released, investors generally believe that the results will exceed expectations. According to FactSet data, Nvidia is expected to announce Q2 revenue of $46.05 billion, higher than the $45 billion guidance given last quarter, with expected earnings per share of $0.95 and net profit estimated at $23.4 billion. Data center revenue is expected to reach $41.34 billion, a year-on-year increase of 57%. Although this is a strong growth rate, it is lower than the 73% growth rate announced in Nvidia's most recent financial report.

Piper Sandler analyst Harsh Kumar stated that Nvidia's guidance for its China business will be the core focus of Wednesday's financial report. Nvidia's chips are at the center of the technological arms race. Trump announced that the US will take a 15% share from Nvidia's China chip sales, while Chinese domestic companies are trying to avoid using Nvidia's H20 chips. There are reports that Nvidia has suspended production of the H20 chips. As China strives to strengthen its domestic chip industry, whether Nvidia can generate revenue from the Chinese market will be a key indicator of how much technological advantage the US holds.

In addition, hyperscalers—companies building AI infrastructure—have been continuously raising their capital expenditure expectations and purchasing large quantities of Nvidia GPUs. These companies' multi-billion-dollar budgets are undoubtedly positive for Nvidia, but last week's tech giant-led stock sell-off has made some investors worry about the sustainability of such large-scale investments. In Nvidia's Q1 financial report, 30% of the company's revenue came from just two clients, indicating a high degree of customer concentration. Nevertheless, analysts remain optimistic about hyperscaler spending, believing that hyperscalers are making an all-out push toward artificial general intelligence (AGI) and have a clear spending plan, with such investments expected to continue for at least several more years.