NVIDIA Financial Report Will Be Out, AI Market Key Wind Ball

NVIDIA, a giant in American artificial intelligence (AI) chips, announced its latest quarterly financial report tomorrow afternoon. The outside world estimates whether the stock market is supported by over-speculation bubbles or is driven by the sensational technology trend that still gathers energy.

According to the US News Agency, in the past two years, NVIDIA (Nvidia) financial reports have become an important trend in the development of the artificial intelligence market. Due to the demand for driving chips in various large data centers, most of them are produced by NVIDIA. NVIDIA became the first listed company to have a market value of more than $4 trillion in July. Since then, its share price has risen by 13%, creating another $500 billion in wealth for shareholders.

NVIDIA shares are booming this summer, continuing the amazing success since early 2023. At that time, NVIDIA's market value was about US$4,000. This wave of popularity began with the launch of the chat robot ChatGPT by the new American AI company OpenAI at the end of 2022, and triggered the biggest technological trend since Apple released its first iPhone in 2007.

Although technology is the biggest beneficiary of this AI frenzy, the overall stock market is also benefiting. Since the end of 2022, the SPC 500 index (S& P 500) has risen by 68%, and investors' vibes have been greatly influenced by the AI ​​trend.

However, even in a general atmosphere of frenzy, there are still people who are silly discussing whether AI frenzy will repeat the Internet bubble in the late 1990s. The Internet bubble eventually led to the collapse of the stock market in 2000, causing the US economy to fall into a slump, and the Silicon Valley fell into a few years of lows until the technology industry flourished again. The MIT recently reported that 95% of AI trial plans ended in failure, and OpenAI executive Sam Altman said the AI ​​market could be in a bubble phase, which scared investors.

Judging from some evaluating indicators, AI technology companies seem to be overly hot. NVIDIA's current share price is about 40 times the future profit, almost twice the reasonable level investors traditionally believe; Microsoft, the same AI giant, has a market value of nearly $4 trillion, while Amazon, Facebook's parent company Meta and Google's parent company Alphabet have a market value of between $1.9 trillion and $2.5 trillion.

NVIDIA will once again show great results from May to July. According to a financial data supplier FactSet, an analyst predicted that NVIDIA's earnings per share would reach US$1.01, a 49% increase over the same period last year and a 53% increase over the previous year, reaching approximately US$46 billion.

These growth reflect the scale of the AI ​​market's capital torrent. In order to build and expand the data center for driving AI, Microsoft, Amazon, Alphabet and Meta have invested heavily in the construction and expansion of AI data centers, and this year's AI investment budget is expected to exceed US$325 billion. With its dominant position in the AI ​​chip market, NVIDIA has greatly benefited from strong demand in this stock.

NVIDIA growth curve begins to swell. If analysts' predictions come true, NVIDIA's latest quarterly revenue growth will significantly lower than 122% in the same period last year. At the same time, the trade war between US President Trump and China has also caused NVIDIA to lose some of its business. After the U.S. imposes AI chip export controls on China, NVIDIA suffered a loss of US$4.5 billion in the first quarter of this year, and its sales in the second quarter may be reduced by US$8 billion.

At the beginning of the month, Trump allowed NVIDIA to export H20 artificial intelligence chips specially designed for local markets to China, with the condition that NVIDIA must collect 15% of its sales to the US government. NVIDIA Executive Chairman Huang Rensheng will discuss this agreement with analysts during a phone meeting with investors, and share his views on the current situation in the AI ​​market.