By Anhata Rooprai, Rashika Singh and Aditya Soni
Publication Date: 2026-08-25 10:02:00
By Anhata Rooprai, Rashika Singh and Aditya Soni
Aug 25 (Reuters) – Nvidia’s results on Wednesday will test whether the company’s latest Rubin chips can drive another period of explosive growth, with some investors questioning the sustainability of the AI spending boom.
The chipmaker has been the biggest beneficiary of the race to build AI infrastructure. Recently, though, its stock has come under pressure as the company has pumped billions of dollars back into the AI ecosystem, stoking fears about its role in so-called circular deals that could artificially inflate demand and distort broader economic signals.
Nvidia’s shares have risen 11.8% so far this year and lagged major rivals, with the company briefly ceding its position as the world’s most valuable firm to Apple last month.
On average, analysts expect its second-quarter revenue to nearly double from a year earlier to $92.18 billion — the quickest pace of growth in seven quarters — driven by an over twofold increase in data center sales, according to data compiled by LSEG.
Investors, however, are increasingly focused on how quickly Nvidia can transition customers from its Blackwell chips to its next-generation Vera Rubin processors, with shipments expected to begin this autumn.
Driving that growth is a data-center spending spree by Big Tech that is set to exceed $730 billion this year, as well as ballooning outlays at smaller,…
