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Cailianshe News, August 20 (Editor: Bian Chun)On August 28, Nvidia will release its Q2 performance report for fiscal year 2025. Wedbush Securities, a well-known US investment bank, said that with the boom in artificial intelligence spending in full swing, Nvidia is bound to release another strong quarterly report.

Despite the recent cooling of AI investment enthusiasm, Wedbush remains firmly optimistic about Nvidia. Matt Bryson, senior vice president of equity research at Wedbush, said that the $1 trillion AI spending "wave" that he had previously predicted is underway, and technology companies are still in the early stages of investing in AI hardware.

"There's still a lot of money invested in the artificial intelligence chips that Nvidia produces," Bryson said in an interview with the media on Monday.

He noted that the recent sell-off in Nvidia shares stemmed from concerns that demand for the company's artificial intelligence chips was weakening and that there might be problems with deliveries of the company's next-generation GPU, Blackwell.

But some of Nvidia’s biggest partners reported healthy profits, thanks in part to increased investment in artificial intelligence.

Foxconn - a major buyer of Nvidia chips - saw its profit rise 6% last quarter, largely thanks to "strong growth momentum" from its artificial intelligence servers.

Bryson noted that Supermicro, another large Nvidia customer, also had "very good" sales last quarter, with revenue exceeding expectations, although earnings missed estimates.

“A lot of recent data shows that spending on AI is not slowing down,” he said.

Bryson predicts that the integration of artificial intelligence into personal devices could also be a big boost for the semiconductor industry because it will spur more demand for AI content.

He added that Nvidia's delay in releasing its Blackwell chip also might be "irrelevant" assuming the company goes ahead with its planned launch of the chip from now on.

"I still have a 'buy' rating on Nvidia and I think Nvidia will beat expectations again next quarter. They always do. There doesn't seem to be any change in momentum in their customer base," Bryson said.

Goldman Sachs analysts also recently released a research report saying that Nvidia will continue to maintain its strong position in AI and accelerated computing thanks to strong demand from large cloud service providers and corporate customers, and continue to maintain its "buy" rating. In terms of stock price prospects, Goldman Sachs set a 12-month target price of $135 for Nvidia.

Doubtful Voices

However, as more and more technology companies flock to the field of artificial intelligence, some analysts have begun to doubt Nvidia's huge success, believing that demand for Nvidia chips will definitely decline.

Some of Nvidia's biggest customers, such as Meta, Alphabet and Amazon, are already developing their own chips or investing in other partners, according to an analyst who is bearish on Nvidia's stock.

Nvidia shares rose 4.35% to $130 on Monday. The stock has surged 3,021% over the past five years.