Nvidia Corp. (NASDAQ:NVDA) reports second-quarter earnings Wednesday after the bell, and tech investor Dan Niles said Wall Street’s growth expectations may be too conservative given what its biggest customers are spending.
Hyperscaler Spending Hits Its Fastest Pace Since ChatGPT
Niles, founder of Niles Investment Management, said on X that hyperscaler capital expenditure grew 92% year-over-year and 29% quarter-over-quarter in the three months ended June 30, the fastest pace since ChatGPT launched in late 2022.
He added that public cloud revenue growth at the three largest cloud vendors accelerated to its fastest pace ever, up 43% year-over-year and 15% quarter-over-quarter, while their aggregate operating margins expanded by 2 percentage points to a record 39%.
That acceleration, Niles noted, stands in sharp contrast to Wall Street’s own expectations for Nvidia, whose quarterly revenue growth is projected to slow to 13%, down from more than 20% in each of the last three quarters.
