Nvidia is expected to see further profit growth this week thanks to the continued adoption of artificial intelligence (AI).
This is according to a report by the Press Association on Sunday (Aug. 25) outlining the chipmaker's second-quarter earnings, due to be released on Wednesday (Aug. 28).
Nvidia became one of the world's largest publicly traded companies this year as investors gained confidence in the company's growth, driven by a boom in generative AI and data centers. The company's most recent earnings, reported in May, showed quarterly growth of 18% and annual revenue growth of 262%.
According to a Press Association report, the analyst consensus compiled by Zacks Investment Research predicts that AI-related growth could drive overall quarterly revenue growth by 109%.
“Analysts expect this momentum to continue into next week's earnings report,” said Arlin Cheeky, equity analyst at Hargreaves Lansdown. “Companies like Meta, Amazon and Microsoft are all customers, each with deep pockets and each looking to build AI products powered by Nvidia's market-leading chips.”
The report also includes commentary from analysts at AJ Bell, who said Nvidia has “beat consensus expectations and raised guidance in each of the past five quarters. Investors will likely want some insight into what the rest of the year will hold, including more information on the company's delayed AI chips, the analysts agreed.
In other AI news, PYMNTS wrote about how AI-driven shopping is forcing brands to rethink their marketing strategies last week.
As the report points out, industry experts and recent data suggest that AI is having a growing impact on e-commerce: For example, research by content management system provider Storyblok showed that roughly 40% of high-value online shoppers now routinely use AI services like ChatGPT to research products.
Additionally, 17% of respondents cited AI tools as the primary source of information for purchasing decisions, behind only Google (45%) and major online marketplaces such as Amazon (26%).
“AI is changing the way consumers search for and trust product information online,” Michelle Simmons, founder and CEO of Ditto Digital, told PYMNTS. “We're already adjusting our SEO strategy in response to both the growth of consumer-facing AI and changing Google guidelines.”
Google has revamped its quality metrics to include “experience” in addition to expertise, authority, and trust (EEAT), a change that has prompted marketers to upgrade their content with elements that highlight real-world product experiences.
“We've been enhancing our content with elements that clearly demonstrate real-world experiences,” Simmons said. “This allows brands to offer a different take on AI-generated content, and makes it more useful for consumers who need in-depth product research to make complex or expensive purchasing decisions.”
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Read more: Aarin Chiekrie, AI, AI chips, AJ Bell, artificial intelligence, big tech, data centers, revenue, GenAI, generative AI, Hargreaves Lansdown, news, NVIDIA, PYMNTS News, Featured News, Zacks Investment Research
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