--- title: "Nvidia (NVDA) Faces a New AI Rival Ahead of Q2 Earnings Tomorrow" type: "News" locale: "en" url: "https://longbridge.com/en/news/296943763.md" description: "Ahead of Nvidia's Q2 earnings on August 26, OpenAI revealed its custom AI processor, Jalapeño, built with Broadcom. Benchmarks show Jalapeño significantly outperforms Nvidia's Blackwell systems in power efficiency, throughput, and latency for inference tasks. This development highlights growing competition as hyperscalers seek custom chips to reduce costs. Despite this rivalry, Wall Street maintains a 'Strong Buy' consensus on Nvidia, expecting revenue near $92.27 billion and EPS of $2.09." datetime: "2026-08-25T17:28:13.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296943763.md) - [en](https://longbridge.com/en/news/296943763.md) - [zh-HK](https://longbridge.com/zh-HK/news/296943763.md) generator: "portal-rs" --- # Nvidia (NVDA) Faces a New AI Rival Ahead of Q2 Earnings Tomorrow Nvidia (NVDA) heads into its Q2 earnings, due on August 26, with strong momentum. However, the AI giant is now facing a new and serious competitor rising in AI inference hardware. ChatGPT-maker OpenAI has published testing results for Jalapeño, its first custom AI processor, built in partnership with Broadcom (AVGO). Benchmarks show it outperforming Nvidia's Blackwell (GB200/GB300 NVL72) systems in power efficiency, throughput, and end-to-end latency on models like GPT‑OSS 120B, DeepSeek R1, and Kimi K2.5 1T. In a press release, OpenAI said Jalapeño "can serve more AI work per unit of power while also returning responses more quickly," offering both higher throughput and lower latency in one architecture. ## **Big Jumps in Speed and Efficiency Across Key AI Tests** Across tests, Jalapeño delivered 1.5× to 1.9× more performance per watt and 1.7× to 3.6× lower end‑to‑end latency than comparison systems. For highly interactive workloads, the kind powering agents and real‑time applications, performance was 2.1× to 4.1× higher. The chip also showed large gains against Nvidia's GB200 and GB300 superchips in matched-speed benchmarks. For example, at identical decoding speeds on GPT‑OSS 120B, Jalapeño delivered up to 53.7× more mixed tokens per kilowatt. On DeepSeek R1, it delivered over 100× more throughput at the same token‑by‑token speed. OpenAI said the gains come from a full‑stack design, building the chip, memory, networking, and software together around real model workloads. The setup cuts data movement and keeps model state local. This helps reduce delay and idle time. Jalapeño is also designed to scale. OpenAI said it will begin deploying the chip in its own infrastructure by year‑end and is already developing Gen 2 and Gen 3 versions. The company noted that the chips' advantage grows on larger, frontier‑scale models. ## **Jalapeño Adds Pressure while Wall Street Eyes Nvidia's Q2 Beat** For Nvidia, a strong in‑house rival from one of the world's largest AI customers adds a new twist to the market. While Nvidia still leads in training hardware and continues to supply OpenAI with accelerators, Jalapeño shows that hyperscalers are now looking harder at custom chips to cut costs, boost efficiency, and optimize for their own workloads. Regarding NVDA's Q2 results tomorrow, investor expectations remain high as AI demand was strong across cloud and enterprise customers during the quarter. Wall Street is looking for revenue near $92.27 billion, almost double last year's level, with EPS of about $2.09, up from $1.05 in last year's quarter. ## **Is Nvidia a Good Stock to Buy Now?** Overall, Wall Street has a Strong Buy consensus rating on Nvidia stock, based on 29 Buy recommendations issued in the past 3 months. 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