Nvidia Slips 1% Ahead of Q2 Results as $92.3 Billion Revenue Test Looms

3 articles · Updated · Yahoo Finance · Aug 26

Nvidia shares fell more than 1% before Wednesday's second-quarter report, giving back part of Tuesday's rebound as investors questioned whether the AI spending boom will keep paying off.
Bloomberg consensus expects adjusted EPS of $2.09 on $92.3 billion in revenue, including $85.8 billion from Data Center—up 107% year over year and nearly all of the company's growth engine.
That business still leans heavily on hyperscalers, with projected sales of $43.5 billion, while Amazon, Microsoft and Google are also developing in-house chips or reselling capacity, creating a longer-term threat to Nvidia's dominance.
Recent cloud growth at Microsoft, Amazon and Google has eased some AI-demand worries, but heavier spending plans from Google and Meta have also revived concerns about returns on massive capital outlays.
Nvidia is pushing deeper into AI infrastructure financing through a $500 billion capital pool with BlackRock, Blackstone, KKR, Apollo, Brookfield and Goldman Sachs, and by backing an Ohio data-center project that could draw up to $150 billion.