What will Nvidia say after the bell in its latest earnings call?

Nvidia, a leading player in AI infrastructure, delivered its Q2 earnings on Wednesday, exceeding market expectations on both earnings per share (EPS) and revenue. The company reported adjusted EPS of $2.22 on $96.2 billion in revenue, surpassing Wall Street's consensus of $2.09 EPS and $92.3 billion in revenue. Nvidia expects to generate between $105.8 billion and $110.1 billion in revenue for Q3, which was higher than the anticipated $1.51 billion.

CEO Jensen Huang emphasized that AI has reached a critical inflection point, with its tokens proving to be productive and profitable. The company's Data Center revenue, encompassing Hyperscalers, AI Clouds, Industrial, and Enterprise (ACIE), amounted to $89 billion, outpacing the expected $85.8 billion. CFO Colette Kress noted that Hyperscale revenue more than doubled in Q2, with ACIE revenue increasing by 138%.

Nvidia's Edge Computing segment, which includes physical AI and gaming, generated $7.2 billion, surpassing analyst estimates of $6.6 billion.

Despite chip stocks facing challenges over the past three months due to concerns about potential returns on AI investments, Nvidia's strong performance has helped alleviate some of these fears. Companies like Microsoft, Amazon, and Google have reported solid growth in their respective cloud businesses, contributing to the overall positive sentiment.

However, Nvidia's reliance on hyperscalers such as Amazon, Google, and Microsoft for a significant portion of its revenue could pose a headwind in the future if these companies build their own chips or sell them to third-party customers.

Nvidia has also ventured into new partnerships, teaming up with financial institutions such as BlackRock, Blackstone, KKR, Apollo, Brookfield, and Goldman Sachs to establish a $500 billion pool of capital. Additionally, the company is supporting SB Energy and OpenAI's efforts to build a massive 8-gigawatt data center in Ohio, with potential investments up to $150 billion.