Nvidia Earnings Preview: AI Capex will continue riding the tailwind, faces Antitrust Concerns
AInvestTuesday, Aug 27, 2024 10:04 am ET
1min read
MSFT --
NVDA --

Nvidia is likely to report its fiscal 2025 Q2 earnings on Aug. 28, is poised to be one of this year's most important stock market events, and anticipation is sky-high.

Here are Key Focal Points about Nvidia's Earning:

With its last quarterly report, Microsoft announced AI spending is poised to continue climbing over the next year. Microsoft is widely believed to be Nvidia's largest customer, and increased spending on AI infrastructure is a clear bullish indicator. Another big customer Meta, also raised its capital-spending guidance range. Tesla had strong demands for Nvidia’s chips.

Alphabet CEO Sundar Pichai said, The risk of under-investing is dramatically greater than the risk of over-investing for us here. That should be tailwind of Nvidia shareholders.

Nvidia also reported received orders of its A800 GPU worth $5 billion from Chinese tech giants, including Baidu, ByteDance, Tencent, and Alibaba, amid fears of the new export restrictions.

Nvidia also faces risks:

There may be more trouble brewing around potential production delays of Nvidia's next generation Blackwell AI chips, means revenue growth might take a hit.

There are also mounting antitrust concerns. US and France regulators are probing.

The company reaching the law of large numbers here, once a company gets to a certain size, it just physically can't keep up the same growth," said Michael Schulman, chief investment officer at Running Point Capital.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.