Nvidia’s quarterly earnings have been must-watch events ever since its stock began a dramatic ascent in 2023, following OpenAI’s launch of ChatGPT and the start of the generative AI boom. Now that it’s the world’s most valuable public company, Nvidia’s results face intense scrutiny as investors seek reassurance that AI-driven capital spending remains justified.
Today’s after-the-bell announcement will come amid weeks of tech stock selloffs. But Nvidia stock edged higher this morning, as analysts predicted data center revenue, adjusted earnings per share, and gross profit margin would rise.
Certainly, the company’s bona fides have not changed amid the recent stock roller-coaster ride: Nvidia controls the vast majority of the market for GPUs, the chips used to train and run large AI models like ChatGPT and Anthropic’s Claude. Its CUDA software platform, which lets developers write code optimized specifically for Nvidia hardware, has become the industry’s de facto standard, reinforcing that dominance. Meanwhile, the company’s rapid cadence of new chip generations—from Hopper to Blackwell, with Rubin on deck—signals no intention of slowing down.
Still, investors will be watching closely for signs of strain. One key question is whether competitors are beginning to gain real traction. For example, days after committing to deploy millions of Nvidia GPUs, Meta this week announced a multibillion-dollar deal to buy chips from AMD. The agreement also gives Meta the option to take up to a 10% stake in AMD, echoing a similar investment AMD secured from OpenAI last October.
