Breaking Minute
Nvidia (NVDA) has been a key company—and some may say the key company—driving the artificial intelligence (AI) revolution. The tech giant designs the most powerful graphics processing units (GPUs), the chips fueling AI, and has expanded this expertise into 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. Nvidia shared this and other news just last month during its fiscal 2027 second-quarter earnings report.
Nvidia's soaring earnings: The company's earnings and stock price have soared over the past few years, driven by its dominance in the AI chip market. NVDA data by YCharts. 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, 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 as investors shift into other AI players that didn't climb as much as Nvidia in the earlier stages of the AI boom.
Now, Sept. 10 represents a fresh opportunity to hear more from this AI powerhouse. Nvidia is set to make a presentation at the Goldman Sachs Communacopia + Technology Conference at 8:50 a.m. Pacific Time. This will be an opportunity for investors to hear the latest news at a crucial moment: as Nvidia rolls out its latest update, the Vera Rubin platform. The company said last month that it had begun production shipments of Rubin and that the system would likely account for 20% of data center revenue in the third quarter. This launch also marks Nvidia's entry into the stand-alone central processing unit (CPU) market, which has so far been dominated by AMD and Intel. Nvidia has set its sights on leadership here, so any CPU forecasts will be points to watch. For the first time, Nvidia recently offered an annual growth forecast, predicting 70% year-over-year revenue growth for the 2028 fiscal year—that's the fiscal year that begins in early 2027. Investors should look for additional comments, potentially concerning supply constraints and demand, that may offer further clues about what to expect.
Nvidia's headwinds: Tight memory supply and higher prices have been and continue to be a headwind for Nvidia. The company might offer investors additional details about how it's handling this challenge. Additionally, it will be important to listen for any comments on potential sales in China. Restrictions by the U.S. blocked Nvidia's chip sales to China in April 2025, and though the U.S. has given the company the go-ahead, Nvidia still hasn't been able to reenter this high-potential market. If Nvidia addresses some of these points, my prediction is that Sept. 10 could be a big day for shareholders, and the stock could take off in the days to follow. Even if Nvidia shares don't react after the Goldman Sachs conference, the company, thanks to its solid AI empire, is still well-positioned to deliver a win to investors over the long run.
Source: The Motley Fool
