This article first appeared on GuruFocus.
Nvidia (NVDA, Financials) is expected to deliver another strong earnings report, but investors will be watching whether its AI chip lead can hold as competition grows.
The company is expected to report a 79% revenue increase for the April quarter, according to LSEG data cited by Reuters. Adjusted profit is expected to rise 81.8% to $42.97 billion.
The bigger question is where growth comes from next. Nvidia has dominated chips used to train AI models, but demand is shifting toward inference, where AI systems respond to queries and complete tasks in real time.
That market is larger but more competitive. Intel, Advanced Micro Devices, Alphabet and Amazon are all pushing chips or systems aimed at AI workloads. Alphabet’s custom Tensor Processing Units have already attracted major customers.
Nvidia is trying to defend its position with new systems tied to inference and its Blackwell and Rubin platforms. Investors will also watch for supply updates after Nvidia’s supply commitments jumped to $95.2 billion.
Margins are another focus. Analysts expect first-quarter margins of 74.5%, though higher memory and packaging costs could pressure profitability later this year.
The next catalyst will be Nvidia’s earnings outlook and whether management can show its AI lead is still expanding.
