According to a Goldman Sachs note this week, Nvidia is prepared to silence critics when it announces Q2 earnings results next month. The outlook emerged after Goldman Sachs met with Nvidia CFO Colette Kress.
There are growing concerns that Nvidia's customers' profits are insignificant compared to the billions of dollars spent on AI chips. "End-user companies and their investors will soon look for revenue to justify the $500 billion already spent," according to a recent Bank of America note. "No one denies the computing power. But after one last frenzied rally around the latest chips, investors may come to doubt the near-term economics."
