Nvidia faces Wall Street's high expectations two years into AI boom

Core Insights - Nvidia has experienced significant growth over the past two years, with revenue more than tripling and profits quadrupling due to the rise of generative artificial intelligence [1] - The company became the first to reach a $4 trillion market cap, with its stock price increasing twelvefold since the end of 2022 [2] - Despite substantial growth, there has been a slowdown, with a dip to 69% growth in the fiscal first quarter of this year, and a projected year-over-year increase of 53% to $45.9 billion for the second quarter [3] Financial Performance - Nvidia's data center revenue accounted for 88% of total sales in the first quarter, highlighting the importance of AI to its business [4] - A significant portion of sales, 34%, came from three unnamed customers, primarily major internet companies and cloud providers like Microsoft, Google, Amazon, and Meta [4] Market Influence - Nvidia's performance is seen as a key driver for the AI market, influencing how the market prices AI-related trades [5] - The company constitutes approximately 7.5% of the S&P 500 index [5] Industry Investment - Other major tech companies are projected to spend around $320 billion on AI technology and data center developments this year [6] - OpenAI plans to collaborate with SoftBank and Oracle to invest $500 billion over the next four years on the Stargate project [6]