Nvidia’s AI Dominance Fuels Record Earnings Amid Slowing Growth

Nvidia enters earnings week riding a wave of AI-driven success, yet faces tempered expectations as growth rates decelerate. The chipmaker's transformation from gaming specialist to AI infrastructure titan has been nothing short of meteoric—revenue tripled and profits quadrupled since ChatGPT's 2022 debut, culminating in a historic $4 trillion market cap.

While shares have soared twelvefold during the AI boom, cracks appear in the growth narrative. Quarterly revenue gains plummeted from triple digits to 69% in Q1, with analysts projecting just 53% growth for Q2. Data centers now deliver 88% of sales, with hyperscalers accounting for over a third of revenue through three unnamed clients.

The entire tech sector fuels Nvidia's ascent, with rivals collectively budgeting $320 billion for AI infrastructure this year. As the presumed recipient of half this spending, Nvidia's 7.5% S&P 500 weighting underscores its market-moving potential—even as investors question how long the AI Gold rush can sustain such dizzying valuations.