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BusinessTechnology180 words1 min read

Nvidia's Earnings Report Becomes a Big Test for the AI Boom

the nvidia logo is displayed on a table
Photo by Mariia Berezovsky on Unsplash

Nvidia is a big technology company. It makes special computer chips. These chips help power artificial intelligence, or AI. Many companies use Nvidia chips to build AI programs.

Nvidia is very important for the stock market. When Nvidia does well, the whole market often goes up. When Nvidia does badly, the market can go down too. People call Nvidia the "heart" of the AI boom.

Soon, Nvidia will share its earnings report. This report shows how much money the company made. Many investors are watching closely. This report is a big test for Nvidia.

A famous investor named Michael Burry made a comment. He said Nvidia's earnings will be "lights out," which means very strong. But he also said something else. He said all of Nvidia's new money might be circular. This means companies might be paying each other in a closed circle, not bringing in truly new money.

Some experts think Nvidia's stock price could fall after the report. This could happen even if Nvidia's numbers are good. Investors sometimes expect even more than a company shows.

Vocabulary7 words

artificial intelligence
computer systems that can think or learn like humans
earnings
the money a company makes
circular
going in a closed loop, coming back to the start
stock
a small part of a company that people can buy
investor
a person who puts money into a company to make more money
boom
a time when something grows very fast
chip
a small computer part inside machines

Quiz

1. What does Nvidia make?
2. What is coming soon for Nvidia?
3. True or False: Michael Burry said all of Nvidia's new revenue might be circular.

Fill-in-the-blank listening

Play the audio again and fill in the missing words as you listen.

Nvidia is a big technology company. It makes special computer _____. These chips help power artificial _____, or AI.

Nvidia is very important for the stock _____. When Nvidia does well, the whole market often goes _____.

Soon, Nvidia will share its _____ report. This report shows how much _____ the company made.

A famous _____ named Michael Burry made a comment. He said all of Nvidia's new money might be _____.

Some experts think Nvidia's stock _____ could fall after the report.

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