Nvidia Trades at Five-Year Low Valuation as Earnings Report Nears Amid Rising AI Demand

Nvidia is trading at its cheapest valuation in five years as the $5.28 trillion chipmaker prepares to report earnings on Wednesday, according to information highlighted by @coinbureau in a recent post on X. The company enters the report with substantial AI-related demand, a $91 billion quarterly revenue guide and a $1 trillion order book covering 2026 and 2027.

The developments come as Nvidia remains at the center of the global expansion in artificial intelligence infrastructure. Its processors are widely used to power AI systems, while demand from major technology companies continues to drive investment in data centers and related computing capacity.

Nvidia Guides for $91 Billion in Quarterly Revenue

Nvidia has guided for $91 billion in revenue for the quarter, excluding China data center sales.

The guidance provides an important benchmark ahead of the earnings announcement as investors assess whether demand for AI infrastructure continues to support the company’s growth. Nvidia’s data center business has become a major component of its operations as customers invest in computing systems designed to train and operate increasingly sophisticated AI models.

The exclusion of China data center sales also reflects the specific market conditions surrounding Nvidia’s international business. The company operates within a semiconductor industry that has been affected by technology restrictions and changing requirements in different markets.

Customers Reportedly Hold $2.3 Trillion in AI Backlog

The scale of spending among Nvidia’s customers is another major feature of the current environment.

According to Bank of America, Nvidia’s customers are sitting on $2.3 trillion in AI backlog. The figure illustrates the magnitude of planned or committed spending associated with artificial intelligence infrastructure across the company’s customer base.

Nvidia’s own order book for 2026 and 2027 is valued at $1 trillion, according to the information cited in the X post.

Together, the figures point to substantial future demand for AI-related computing infrastructure. They also highlight the extent to which Nvidia’s business is connected to longer-term investment plans by companies building AI capabilities.

AI Server Prices Face More Than 15% Increase

Alongside strong demand, the AI infrastructure market is facing higher component costs.

Nvidia told its biggest clients this week to expect price increases of more than 15% on AI servers as memory chip costs surge, according to Bloomberg information cited in the post.

Memory components are an important part of AI computing systems, and rising costs can affect the economics of building and deploying data center infrastructure. Higher server prices could therefore influence the cost of expanding AI computing capacity for Nvidia’s customers.

The development also demonstrates that the rapid growth of AI infrastructure is occurring alongside supply and cost pressures within the broader semiconductor markets ecosystem.

Nvidia Pays $6 Billion for Poolside AI Models

Nvidia has also expanded its involvement in AI models and talent through a deal involving startup Poolside.

The company paid $6 billion to license AI models from Poolside and extended job offers to more than 100 of the startup’s employees, according to the information provided in the X post.

The move adds another dimension to Nvidia’s position within the AI industry. While the company remains best known for its semiconductor technology, the broader AI ecosystem increasingly encompasses computing hardware, software, models and specialized talent.

The Poolside agreement and employment offers come as companies across the industry continue to invest in technologies and expertise related to artificial intelligence.

Earnings Report Puts Nvidia’s AI Business Under Focus

Nvidia’s Wednesday earnings report will provide an updated view of its financial performance as the company navigates exceptionally strong demand for AI infrastructure alongside rising component costs.

The company enters the report with $91 billion in quarterly revenue guidance, a reported $2.3 trillion AI backlog among customers and a $1 trillion order book for 2026 and 2027. At the same time, the reported increase in AI server prices and higher memory costs underscore the pressures affecting the industry.

With Nvidia valued at $5.28 trillion and trading at its cheapest valuation in five years, its upcoming results will be closely watched for further information about the company’s performance and the continuing expansion of the AI infrastructure market.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.