Nvidia is expected to show another jump in profits this week thanks to ongoing artificial intelligence (AI) adoption.
That’s according to a report Sunday (Aug. 25) by the Press Association, looking ahead at the chipmaker’s second quarter earnings, set to be released Wednesday (Aug. 28).
Nvidia became one of the largest public companies in the world this year thanks to investor confidence in its growth, driven by the generative AI and data center boom. The company’s last earnings, released in May, showed quarterly growth of 18% and annual revenue growth of 262%.
According to the Press Association report, an analyst consensus collected by Zacks Investment Research projects that overall revenues are likely to be 109% higher for the quarter thanks to AI-related growth.
“Analysts are expecting this momentum to continue into next week’s results,” said Aarin Chiekrie, equity analyst at Hargreaves Lansdown. “The likes of Meta, Amazon and Microsoft are all customers, each with deep pockets and a desire to build out their AI offerings with the power of Nvidia’s market-leading chips.”
The report also includes comments by analysts at AJ Bell, who said Nvidia has “demolished consensus estimates and raised guidance for each of the past five quarters.” They agreed that investors will be seeking some idea of what the remainder of the year will look like, including more information on the company’s delayed AI chips.
In other AI news, PYMNTS wrote last week about the way AI-driven shopping is forcing brands to reconsider their marketing strategies.
As that report noted, industry experts and recent data show AI’s increasing influence on eCommerce. For example, a study by content management system provider Storyblok shows that nearly 40% of high-value online shoppers now routinely use AI services like ChatGPT to research products.
And 17% of respondents ranked AI tools as their chief information source for purchase decisions, behind only Google (45%) and major online marketplaces such as Amazon (26%).
“AI is altering how consumers search for and trust product information online,” Michelle Symonds, founder and CEO of Ditto Digital, told PYMNTS. “We are already adapting our SEO strategies, both in response to the growth of consumer-facing AI but also in response to Google’s changing guidelines.”
Google has revamped its quality metrics to include “Experience” alongside Expertise, Authority and Trust (EEAT), a shift that has marketers upgrading their content with elements that emphasize real-world product experiences.
“We have been enhancing content with elements that clearly demonstrate real-world experience,” Symonds said. “This allows brands to provide information that is distinct from AI-generated content and, therefore, more helpful to consumers who need in-depth product research for complex or expensive purchasing decisions.”
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