Adria Cimino, The Motley Fool
5 min read
Nvidia (NASDAQ:NVDA) has been a key company — and some may say the key company — driving the artificial intelligence (AI) revolution. This is because the tech giant designs the most powerful graphics processing units (GPUs), the chips fueling AI, and has expanded this expertise into the creation of complete systems. Today, Nvidia is a full-stack AI company, offering customers a vast selection of products and services needed along the AI path.
All of this has translated into explosive growth and record levels of earnings. In the most recent quarter, Nvidia’s revenue soared 106% to $96 billion. And profit followed, advancing 126% to $59 billion. Nvidia is benefiting from massive investments in AI infrastructure; capital expenditures by the company’s top five customers are forecast to reach $1.3 trillion next year.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Nvidia shared this and other news just last month during its fiscal 2027 second-quarter earnings report. Now, Sept. 10 represents a fresh opportunity to hear more from this AI powerhouse. My prediction is that it will be a big day for shareholders. Here’s what to watch.
Image source: Getty Images.
Nvidia’s soaring earnings
So, first, a quick summary of Nvidia’s recent and long-term performance. The company’s earnings and stock price have soared over the past few years, as shown in the chart below, driven by its dominance in the AI chip market.
Nvidia entered this market about a decade ago, well before the AI boom started, and designed its GPUs specifically to serve AI. In the past, Nvidia focused its designs on the gaming space — this remains a market for Nvidia, but the AI opportunity has become the tech giant’s biggest business. For example, in the recent quarter, data center revenue came in at $89 billion on the total $96 billion in revenue.
Nvidia’s stock price continues to climb, but with a gain of about 20% so far this year, it’s underperforming certain AI peers such as chip rivals Advanced Micro Devices and Intel, and memory chip giant Micron Technology. Those three players have seen their stock prices soar in the triple digits. This is as investors shift into other AI players that didn’t climb as much as Nvidia in the earlier stages of the AI boom.
An update from Nvidia
