Nvidia prepared to report second-quarter earnings on Wednesday, with the results expected to demonstrate whether the chipmaker’s next-generation Rubin processors can maintain its trajectory of rapid expansion. The company has been a primary driver of the artificial intelligence infrastructure buildout, though recent market pressures have affected its valuation metrics.
Analysts projected average second-quarter revenue of $92.18 billion, representing a near-doubling from the prior year and marking the fastest growth pace in seven quarters. Data center sales were expected to more than double year-over-year. The company’s shares had gained 11.8% through the year but lagged major peers, with Apple briefly surpassing Nvidia’s market capitalization in the previous month.
Investor attention increasingly focused on how rapidly Nvidia could shift customer deployments from its Blackwell architecture to the next-generation Vera Rubin processors, with shipments anticipated to commence in the autumn. Third-quarter sales were forecast to rise 82.8% to $104.20 billion, with adjusted gross margin expected to remain near 75%.
Concerns about the sustainability of the artificial intelligence spending boom intensified following Nvidia’s involvement in arranging $500 billion in financing from six major U.S. financial institutions for infrastructure-building customers, as well as an agreement to guarantee up to $105 billion to support OpenAI’s lease of a large data center in Ohio for 20 years. Chief Executive Jensen Huang defended the financing approach, characterizing it as supporting fast-growing customers and securing facilities to house the company’s chips for decades rather than artificial demand creation.
Nvidia also faced mounting competition from custom chips developed by major technology companies and central processors from Intel and AMD, particularly in inference applications. Morgan Stanley analysts estimated Rubin chips could generate nearly $9 billion in sales during the third quarter ending in October, though they noted additional time would be needed to assess whether Nvidia could capture market share from competitors.
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