Nvidia is anticipated to report a significant increase in profits this week, driven by the ongoing surge in artificial intelligence (AI) adoption. This outlook comes ahead of the chipmaker’s second-quarter earnings announcement scheduled for Wednesday, August 28.
This year, Nvidia has emerged as one of the world’s largest public companies, fueled by investor confidence in its growth amid the booming AI and data center markets. The company’s previous earnings, released in May, revealed an 18% quarterly growth and a staggering 262% year-over-year revenue increase.
According to a report by the Press Association, analysts polled by Zacks Investment Research predict that Nvidia’s revenues for the quarter could rise by 109% due to AI-related demand. “Analysts expect this positive trend to continue in the upcoming results,” said AarinChiekrie, equity analyst at Hargreaves Lansdown. Major companies like Meta, Amazon, and Microsoft are key customers, all of whom are investing heavily in expanding their AI capabilities using Nvidia’s industry-leading chips.
Analysts from AJ Bell noted that Nvidia has consistently surpassed consensus estimates and raised its guidance for the last five quarters. Investors will be keen to hear more about the company’s future outlook, including updates on its delayed AI chips.
In related AI developments, a recent PYMNTS report highlighted how AI-driven shopping is reshaping brand marketing strategies. The report noted that AI is becoming increasingly influential in eCommerce, with nearly 40% of high-value online shoppers now using AI tools like ChatGPT to research products. Additionally, 17% of consumers identified AI tools as their primary source of product information, following only Google and major online marketplaces like Amazon.
“AI is transforming how consumers search for and trust product information online,” said Michelle Symonds, founder and CEO of Ditto Digital. She noted that marketers are adapting their strategies in response to the rise of consumer-facing AI and Google’s updated quality metrics, which now emphasize “Experience” alongside Expertise, Authority, and Trust. Symonds explained that brands are enhancing their content with real-world product experiences to provide information that stands out from AI-generated content, helping consumers make informed decisions, especially for complex or costly purchases.
