Nvidia's financial report is about to be announced, Wall Street focuses on the trend of AI market

According to BlockBeats, on August 27, after the close of the US stock market today, Nvidia will release its second-quarter financial report. The market closely monitors its trends in three aspects: China-US AI game, chip supply and demand relationship, and super-large customer investment. The financial report is also related to the entire stock market and the trend of the underlying artificial intelligence market. According to market data, Nvidia's current intraday increase is 0.03%, and Nvidia concept stock CoreWeave is active intraday, and is now rising by nearly 5%. Before the financial report was released, investors had basically believed that the performance would exceed expectations. Nvidia is expected to announce $46.05 billion in fiscal second-quarter revenue, up from the $45 billion guidance given in the previous quarter, with expected earnings per share of $0.95 and net profit of $23.4 billion, according to FactSet data. Data center revenue is expected to reach US$41.34 billion, a 57% increase year-on-year. Although this is a strong growth rate, it is lower than Nvidia's 73% growth rate reported in its latest earnings report. Piper Sandler analyst Harsh Kumar said Nvidia's guidance on China's business will be the core of Wednesday's financial report. Nvidia's chips are at the center of a technology arms race. Trump announced that the United States will draw 15% of Nvidia's Chinese chip sales, while local Chinese companies try to avoid using Nvidia's H20 chips. It is reported that Nvidia has suspended production of H20 chips. As China strives to strengthen its local chip industry, whether Nvidia can obtain revenue from the Chinese market will be a key indicator to measure how many technological advantages the United States has. In addition, hyperscalers, or companies that build AI infrastructure, have been continuously increasing capital expenditure expectations and buying Nvidia's GPUs in large quantities. The multi-billion-dollar budgets of these companies are undoubtedly good for Nvidia, but the stock market sell-off dominated by tech giants last week has left some investors worried about the sustainability of such large-scale investments. In Nvidia's first-quarter financial report, 30% of its revenue came from only two customers, showing high customer concentration. Despite this, analysts remain optimistic about spending on hyperscale customers, believing that hyperscale customers are sprinting toward universal artificial intelligence (AGI) and have a clear spending plan that will last for at least a few years.