Because of its superior technology and extraordinarily profitable business model, Nvidia has become the central bank of the artificial intelligence revolution. Just as the Federal Reserve determines monetary policy for the United States and, in many cases, strongly influences monetary policy across the world, Nvidia influences almost every aspect of the AI revolution. This is one reason so many eyes will be upon the company as it unveils its latest earnings results on Wednesday.

Nvidia generates extraordinarily high profit margins. Its gross margin, the difference between the cost of producing its products and the revenue it receives from selling them, is around 75%. In practical terms, that means Nvidia generates extraordinary amounts of free cash flow. For its current fiscal year, which ends in January 2027, Nvidia is projected to produce about $150 billion in free cash flow. Nvidia uses that cash to influence nearly every part of the global AI revolution, including compute capacity, which has become the currency of the revolution.

Nvidia is the engine of the AI revolution

I thought bike lanes were ‘DEI.’ Then an SUV killed my father

Copilot is the new Internet Explorer: Inside........

© Washington Examiner