NVIDIA Q2 Earnings Preview: Infrastructure Financing, China Sales, and Gross Margin in Focus

Nvidia will release its second-quarter financial results after US stock market close this Wednesday, with market focus centered on five key areas: AI infrastructure financing, progress on Vera Rubin servers, open model development, sales in China, and gross margin pressure. First, Nvidia recently announced a large-scale AI infrastructure financing initiative and is supporting a major data center project in southern Ohio. Investors are closely watching the company’s level of involvement in these deals and how these financing arrangements will ultimately generate returns. On the product front, Nvidia has stated that its next-generation Vera Rubin servers are expected to start shipping in the third or fourth quarter of this year. The prior Blackwell line was delayed for months due to design flaws, so whether Vera Rubin can proceed as scheduled will be a key watch point. Meanwhile, Nvidia is reported to have acquired the technology and engineering talent of open-weight AI model startup Poolside via a $6 billion licensing deal, to accelerate the development of its own Nemotron open model. Additionally, market participants will monitor Nvidia’s sales performance in China. On the gross margin front, the company currently maintains a high level of around 75%, but as memory prices rise and competition intensifies from custom chips and new processors, Nvidia’s ability to pass costs to customers may become more challenging.