Investors will be watching NVIDIA (NASDAQ: NVDA) closely as the company gets set to post earnings after the closing bell. The results could be important not only for NVDA, but also for the broader artificial intelligence market.
NVIDIA has become one of the biggest winners of the AI boom. As companies spend more money building and running AI systems, demand for NVIDIA’s powerful computer chips has grown quickly. Goldman Sachs remains bullish on the company and has a Buy rating on the stock ahead of the earnings report.
The big question now is simple: Can NVIDIA keep growing at such a fast pace?
What Goldman Sachs Is Watching
Goldman Sachs (NYSE: GS) says investors will be focused on several important areas during NVIDIA’s earnings report. One key topic is NVIDIA’s new $500 billion financing platform with partners. Investors will want to learn more about how this plan could help the company expand its business and support the growing demand for AI technology.
Another major topic will be NVIDIA’s new Rubin products. The company expects to begin shipping its new Vera Rubin systems during the second half of this year.
Rubin is designed to include new graphics processing units, or GPUs, central processing units, or CPUs, and networking technology. These products are expected to offer major improvements in performance and efficiency compared with NVIDIA’s current technology.
That could be especially important as AI companies look for ways to get more computing power while keeping costs under control.
NVIDIA’s New Rubin Chips
NVIDIA’s current Blackwell chips are already extremely powerful. They are used by companies that need large amounts of computing power to train and run AI models.
However, NVIDIA believes Rubin could be an even bigger step forward.
According to the company, Rubin systems could allow businesses to train AI models using 75% fewer GPUs than they would need with Blackwell. NVIDIA also says Rubin could reduce the cost of running AI systems by as much as 90%.
NVIDIA Is Expected to Have Strong Earnings
NVIDIA’s recent financial results show just how quickly the company has grown.
In its previous quarter, NVDA reported $81.6 billion in revenue. That was an 85% increase from the same period a year earlier. The company’s data center business was the biggest driver of that growth. Revenue from the segment reached $75.2 billion, an increase of 92% from the previous year. NVDA expects its next quarter to be even larger.
The company has said it expects to see about $91 billion in revenue for its second quarter. That would represent growth of about 95% compared with the same quarter last year. Wall Street has similar expectations. Analysts are currently looking for roughly $91.8 billion in revenue and about $2.06 in earnings per share. If NVDA reaches those numbers, earnings per share would be nearly twice what the company earned during the same period last year.
These expectations are already very high, which means investors may be looking for more than just a strong quarter. They will likely want to see signs that NVIDIA’s growth can continue.
The Bottom Line For NVDA
NVIDIA is one of the companies at the center of the global AI boom. The market value of the company has grown from about $360 billion in early 2023 to roughly $5.4 trillion, showing just how much investor interest has grown around AI.
Now, investors want to know whether NVDA can continue that incredible growth.
Strong earnings could provide another boost for the company and the wider AI industry. At the same time, the launch of Rubin could give NVIDIA a new opportunity to grow as businesses look for faster and cheaper ways to run AI.