Nvidia reports fiscal Q2 results Wednesday amid concerns over AI spending returns and competition from cloud providers’ in-house chips.
Nvidia shares have risen 15.1% year to date, lagging peers like AMD and the Philadelphia Semiconductor Index as investors grow cautious about its AI-driven growth. The company faces challenges from major cloud providers developing their own AI chips and skepticism over long-term returns on AI infrastructure spending.
In its fiscal Q1, Nvidia reported non-GAAP earnings of $1.87 per share, surpassing estimates of $1.76, with revenue hitting $81.6 billion, an 85% year-over-year increase. Data Center revenue reached a record $75.2 billion, up 92% from the prior year. CEO Jensen Huang has emphasized Nvidia’s central role in the AI expansion.
Markets will focus on Wednesday’s earnings to gauge whether Nvidia can maintain its momentum amid evolving competition and spending scrutiny.