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Nvidia Corp. prepares to report second-quarter earnings as investors weigh networking growth and customer diversification

Nvidia Corp. is set to report its second-quarter earnings after the bell on Wednesday, with analysts expecting revenue to reach approximately $92 billion. While the company remains the dominant force in the artificial intelligence boom, investors are closely monitoring its ability to diversify its customer base beyond the primary hyperscalers, such as Amazon, Google, and Microsoft. Recent data shows that while hyperscalers have historically provided a significant portion of revenue, the ACIE segment—comprising industrial and enterprise customers—is expected to show faster annual growth. Additionally, Nvidia Corp. is expanding its reach into networking infrastructure, with its networking operation generating nearly $15 billion last quarter. This shift toward becoming a "one-stop shop" for AI infrastructure, including the new Vera Rubin systems, is intended to address concerns regarding customer concentration. To facilitate broader adoption, the company has signed a memorandum of understanding with six financial firms to turn GPUs into an investable asset class, potentially unlocking up to $500 billion in financing for customers.

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