LOS ANGELES (AP) — Nvidia has led the artificial intelligence boom to become one of the stock market’s biggest companies, as tech giants continue to spend heavily on the company’s chips and data centers needed to train and operate their AI systems.
The company is now worth over $3 trillion, with its dominance as a chipmaker cementing Nvidia’s place as the poster child of the AI industry ahead of the release of its latest financial results after the close of trading Wednesday.
Wall Street expects the company to report second-quarter adjusted earnings of 65 cents per share up from 27 cents a year ago. Revenue is expected to have surged to $28.74 billion, more than double what it earned in the comparable quarter one year ago. By comparison, S&P 500 companies overall are expected to deliver just 5% growth in revenue for the quarter, according to FactSet.
The problem, critics say, is such stellar growth has set off too much euphoria among investors. Through the year’s …