Nvidia faces growth test as Rubin debut meets AI financing scrutiny

Nvidia's upcoming results on August 25, 2024, will determine if the company's latest Rubin chips can fuel further explosive growth, with some investors questioning the sustainability of AI spending. The chipmaker has profited significantly from the AI infrastructure race, but its stock has faced pressure due to the company's $50 billion in AI financing commitments.

Nvidia's shares have risen 11.8% this year, trailing major rivals and briefly falling behind Apple. Analysts predict revenue will nearly double in Q2 2024, driven by a twofold increase in data center sales. Investor focus now shifts to Nvidia's transition of customers from Blackwell chips to Rubin processors, with shipments expected to commence in autumn.

This growth is fueled by Big Tech's AI spending spree, exceeding $730 billion this year, and smaller AI-focused cloud companies like CoreWeave. Nvidia's role in the AI sector has raised concerns about the sustainability of the boom, with some viewing the chipmaker as a central bank figure in AI financing.