Nvidia earnings preview: Q2 report could decide AI rally's next move

Nvidia will report its second-quarter results after the US market closes on Wednesday, with analysts expecting revenue of roughly $92 billion and investors treating the chipmaker's guidance as a verdict on whether the AI rally still has room to run. The company has become a proxy for the entire AI trade, and its outlook carries weight far beyond Silicon Valley. Analysts expect adjusted earnings of $2.09 a share on revenue growth of 96% year-on-year, with data centre revenue forecast to top $85.4 billion. Nvidia has beaten Wall Street estimates in 22 of the past 24 quarters. The report follows a difficult run for Nvidia's stock, which lost ground for seven consecutive sessions before rebounding roughly 3% since Monday. European chipmakers like ASML also have much riding on the guidance, while the main concern remains concentration, as the bulk of revenue still comes from Amazon, Google and Microsoft.