Nvidia is set to reveal its financial performance amidst market concerns about an AI bubble. Investors are watching closely to see if the company's results will validate the high valuations of AI-related tech stocks. Analysts expect Nvidia's revenue to increase significantly, but there are worries about narrowing margins and the company's ability to meet the growing demand for its chips.
The chipmaker's Q3 revenue is expected to jump, although not at the triple-digit growth seen in previous quarters. Simultaneously, adjusted gross margins could decrease slightly compared to last year. Despite these concerns, demand for Nvidia's chips remains strong, particularly from cloud giants investing heavily in AI data centres.
Some major investors have reduced their stakes in Nvidia, contributing to the anxiety surrounding an AI bubble. The company's upcoming earnings report is crucial for determining the strength of the AI market and either easing or intensifying investor concerns.
