Nvidia is set to report a robust financial performance for the second quarter, driven by sustained investment in artificial intelligence (AI), Wedbush Securities forecasts. The investment firm, which has referred to Nvidia founder Jensen Huang as the “Godfather of AI,” remains optimistic ahead of the company’s earnings announcement on August 28. Wedbush predicts that the anticipated $1 trillion surge in AI spending is unfolding, with tech companies still in the early stages of AI hardware investments.
Wedbush Senior Vice President Matt Bryson highlighted that ongoing demand for Nvidia’s AI chips is a major factor in the company’s positive outlook. Despite a recent dip in Nvidia’s stock due to concerns over potential demand slowdowns and issues with the forthcoming Blackwell GPU, Bryson remains confident. He noted that major Nvidia customers, including Foxconn and Supermicro, have reported increased profits linked to AI investments.
Foxconn’s profits grew 6% last quarter, attributed to strong performance from AI servers, while Supermicro surpassed revenue expectations despite missing earnings targets. Bryson emphasized that the persistent growth in AI spending supports Nvidia’s outlook, suggesting that delays in the Blackwell chip release will not significantly impact the company’s overall trajectory.
While some analysts express skepticism about Nvidia’s long-term success—pointing to potential declines in demand as major tech firms develop their own chips—Bryson maintains a positive view. He projects continued elevated AI spending for at least another year and upholds a ‘buy’ rating for Nvidia, anticipating another successful quarter.
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