Nvidia is set to report second quarter earnings on Wednesday after the closing bell, and investors are looking past the headline number to the part of the business that has been doing the heavy lifting. Jared Blikre said he would be watching the data center segment, where Nvidia's results can be split between compute and networking.
That split matters because networking is growing faster. Blikre said networking was up about 200% year-over-year, compared with about 77% for compute, a gap that suggests more of Nvidia's momentum may be coming from the systems that connect AI chips than from the chips themselves. In the Yahoo Finance discussion, he put it simply: he would be watching the data center, but the data center breaks into two different numbers.
For investors in Nvidia, that is the question underneath the report. Compute remains the bigger, more familiar driver, but networking is the faster mover, and that is happening even as Google and Amazon build their own chips. Jensen Wong is still making money in networking because Nvidia is building the infrastructure to wire those chips together, a business that turns a challenge into another source of demand.
The setup also comes with a market test. Over the last two months, Nvidia has risen about 8% to almost 9% while the Sox fell about 17% to 18% and slipped into a bear market. That gap has kept NVDA in focus, and it is why the second-quarter report is drawing attention beyond the usual earnings metrics. Investors are also watching for any mention of buyback announcements and investments that Blikre said have been mentioned, the kind of update that can move the stock as much as the numbers themselves.
What comes next is the report itself, and that is where the clean story can get messy. Nvidia will not just be judged on whether it beats expectations, but on whether networking can keep outgrowing compute fast enough to show that the company still has room to expand even as hyperscalers push deeper into their own chip designs. If that balance holds, the market will read Wednesday's print as another sign that Nvidia's growth is shifting from selling chips to owning more of the wiring around them.
For readers tracking the post-earnings setup, Nvidia's history after results has pointed to another big move, a pattern that keeps NVDA Earnings on the screen well beyond Wednesday night.
