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Nvidia’s Rubin push faces investor scrutiny ahead of results
Second-quarter revenue is expected to nearly double to $92.2 billion, even as investors question the durability of AI spending and “circular” financing structures.
Nvidia’s results Wednesday will be a test of whether its latest Rubin chips can sustain another stretch of rapid growth, Reuters reports, as some investors question how durable the AI infrastructure spending boom is.
The stock has risen 11.8% so far this year, after it briefly lost its position as the world’s most valuable company to Apple last month, and analysts are looking for momentum to continue as Nvidia navigates customer transition plans from its Blackwell chips to its next-generation Vera Rubin processors, with shipments expected to begin this autumn.
On average, analysts expect Nvidia’s second-quarter revenue to nearly double from a year earlier to $92.18 billion, supported by an over twofold increase in data center sales, according to LSEG data.
However, attention is also focused on how Nvidia is financing and backing parts of the AI ecosystem, including after it helped arrange $500 billion in financing from six major U.S. financial institutions for customers building AI infrastructure, and after agreeing to guarantee up to $105 billion to help OpenAI lease a massive data center in Ohio for 20 years.
Zacks Investment Management strategist Brian Mulberry said Nvidia has become a kind of central banking figure in the AI space, while he flagged the main risk as broad AI exposure without diversification, and Nvidia CEO Jensen Huang argued that using its balance sheet to support customers is justified because the customers are growing quickly but still losing money, and that the Ohio backstop is not circular because OpenAI would pay for the lease.