Struggling AI Industry Looks to Nvidia’s Earnings for a Lift

The artificial intelligence (AI) industry has been seeing share prices dip these last couple of weeks, with major players such as Microsoft, Amazon and Google recording decreases of 7%, 8% and 14% in their share prices, respectively. This comes after these companies, as well as Meta, revealed that they plan to continue investing in their artificial intelligence infrastructure.

Even with these lows, however, Nvidia Corp. (NASDAQ: NVDA) seems to be doing well, although it hasn’t yet announced its latest earnings. Revenue hasn’t been an issue for the chip company, but if it doesn’t meet expectations on Wall Street, the AI trend may suffer a significant blow.

Currently, Hopper artificial intelligence chips manufactured by Nvidia are in demand, with the company planning to increase production of its Blackwell line later in the year. Nvidia controls 80–95% of the high-powered artificial intelligence chips market. This basically means that each time a company announces its spending on artificial intelligence capabilities, it is likely that it is using or buying up Nvidia’s processors.

The company’s second-quarter report shows that its revenue hit $13.5 billion, representing a 101% year-over-year growth. Revenue from its data center came in at $10.3 billion, an increase of more than 140%. In its recent quarter, the company recorded revenue of $26 billion, a more than 260% increase from the previous year’s figure.

While each subsequent quarter has recorded significant gains, analysts expect the growth recorded to reduce slightly in its upcoming quarter. It is expected that the company’s revenue in its soon-to-be-released report will hit $28.6 billion, which is still an impressive increase.

This is supported by an investor note by UBS analyst Timothy Arcuri, who mentioned that TSMC has announced strong quarter-over-quarter results in its computing segment. This, Arcuri noted, was another indication of a possibly strong quarter for Nvidia. TSMC designs and manufactures semiconductors for Nvidia.

Additionally, Nvidia generates profits from the tangible benefits its products afford its clients. Hyperscalers are putting the company’s chips to work as fast as they can to develop and power artificial intelligence models.

At the moment, however, software powered by AI is still in the testing phase. This means that any companies that implement this software shouldn’t expect to see employee productivity surge overnight. Experts believe that AI-powered software, such as Gemini by Google and Copilot by Microsoft, will need years to be able to yield good results for business clients.

While these tech companies focus on bettering their offerings, Nvidia will continue to sell them hardware to use.

About AINewsWire

AINewsWire (“AINW”) is a specialized communications platform with a focus on the latest advancements in artificial intelligence (“AI”), including the technologies, trends and trailblazers driving innovation forward. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, AINW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, AINW brings its clients unparalleled recognition and brand awareness.

AINW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from AINewsWire, text “AI” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit www.AINewsWire.com

Please see full terms of use and disclaimers on the AINewsWire website applicable to all content provided by AINW, wherever published or re-published: https://www.AINewsWire.com/Disclaimer

AINewsWire
Los Angeles, CA
www.AINewsWire.com
310.299.1717 Office
Editor@AINewsWire.com

AINewsWire is powered by IBN