Nvidia growth outlook hinges on Rubin chip rollout

Nvidia’s upcoming results will test whether its next-generation Rubin chips can extend the company’s rapid growth as investors question the durability of the AI spending boom. Analysts expect second-quarter revenue to nearly double from a year earlier to $92.18 billion, powered by an over twofold increase in data center sales, according to LSEG data.

The company’s shares have risen 11.8% so far this year but have trailed major rivals, with Nvidia briefly losing its status as the world’s most valuable company to Apple last month. Investor attention is shifting to how quickly customers move from Blackwell chips to Vera Rubin processors, with shipments expected to begin this autumn.

Nvidia’s role in financing AI infrastructure is also under review. The company helped arrange $500 billion in financing from six major U.S. financial institutions for customers building AI infrastructure and agreed to guarantee up to $105 billion to help OpenAI lease an Ohio data center for 20 years. CEO Jensen Huang has said the support reflects Nvidia’s cash position and customer demand, not circular financing.

Competition from Big Tech custom chips and processors from Intel and AMD is rising, especially in inference. Morgan Stanley analysts estimate Rubin chips could contribute nearly $9 billion in sales in the third quarter ending October, while analysts expect Nvidia to forecast an 82.8% rise in third-quarter sales to $104.20 billion.