$92 Billion Nvidia Earnings Could Make or Break the AI Trade
Nvidia (NVDA) reports second-quarter earnings Wednesday, and Wall Street projects record sales near $92 billion. Analysts also expect net income to climb 95% to more than $51.5 billion, extending its rapid growth.
The report could ripple through the broader market. Nvidia's outlook shapes spending across chipmakers, cloud providers and the wider artificial intelligence (AI) trade.
Wall Street's Growing Dependence on Nvidia
Nvidia has beaten earnings estimates for 14 straight quarters. Last quarter, net income grew 210% year over year, far outrunning Wall Street's 126% forecast, according to FactSet data.
Even so, that track record has raised the bar. Nvidia enters the report on its longest losing streak since 2022. Analysts have pushed their sales estimate to $92 billion, up from $78 billion at the start of the year.
The stakes extend beyond one chipmaker. OpenAI recently told investors its revenue rose just 18% last quarter as losses deepened. Hyperscalers are leaning more on debt to fund data centers. That has fed worries that AI spending has become the market's biggest risk.
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