All eyes are on Nvidia as it prepares to report earnings. Here’s what to expect

LOS ANGELES (AP) —

Nvidia has led the artificial intelligence boom to become one of the biggest companies on the stock market as the tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems. The company is now worth more than $3 trillion, its dominance as a chipmaker cementing Nvidia’s place as the poster child of the AI ​​industry ahead of the release of its latest financial results on Wednesday.

Wall Street expects the company to report adjusted second-quarter earnings of 65 cents per share on revenue of $28.74 billion, more than double what it earned in the comparable quarter a year ago, according to FactSet. Over the past three quarters, revenue has tripled annually, with the vast majority of growth coming from the data center business.

Demand for generative AI products that can compose documents, make images and serve as personal assistants has fueled sales of Nvidia’s specialized chips over the past year, but Wall Street is also looking for any sign that demand for AI is waning.

The Santa Clara, Calif.-based company found itself an early leader in the AI ​​applications race, thanks in part to founder and CEO Jensen Huang’s successful bet on the chip technology used to power the industry. The company is no stranger to big bets. Nvidia’s invention of the graphics processing unit, or GPU, in 1999 helped grow the PC gaming market and redefined computer graphics.

Nvidia will release its quarterly earnings after the market closes on Wednesday.