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[BUSINESS] · United States · 10 sources

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Nvidia faces earnings volatility amid high AI growth expectations

Nvidia is facing significant market volatility as investors prepare for its fiscal second-quarter earnings report, scheduled for late August. The stock has recently experienced a multi-day losing streak, dropping to levels around $210, marking one of its longest declines in nearly four years.

Wall Street analysts have set high expectations for the upcoming report. Consensus estimates project quarterly revenue of approximately $92 billion, representing a 96% increase compared to the previous year. Earnings per share (EPS) are expected to be around $2.09. Data center revenue, a primary growth driver, is anticipated to reach nearly $85 billion.

In related developments, Nvidia announced that its Groq 3 LPX rack is now being produced at scale. This follows a $20 billion acquisition of assets from the AI chip startup Groq. The hardware is intended to provide faster AI inference and will be supplied to companies such as Nebius Group. Despite recent price corrections, many analysts maintain a positive long-term outlook for the company, driven by sustained demand for artificial intelligence infrastructure.

Entities

Amazon · Bank of America · Groq · Microsoft · Nebius Group · Nvidia

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