NVDA Stock Heads Into Earnings Next Week With ‘Rock-Solid’ AI Demand – But The Bar For A ‘Beat-And-Raise’ Is Getting Higher

• Jefferies called AI demand “rock-solid,” citing commitments from Microsoft, Amazon, SpaceX, and OpenAI.
• Revenue is expected to more than double year-over-year to $91.5 billion, with adjusted EPS hitting $2.07.
• Nvidia’s $500 billion financing push and potential Mercor investment will put its expanding AI-investor role in focus.

Nvidia (NVDA) heads into next week’s earnings with Wall Street expecting another beat-and-raise quarter, as accelerating cloud spending at Microsoft and Amazon and major AI commitments from SpaceX and OpenAI reinforce confidence in demand for its chips.

NVDA stock fell 1% on Wednesday to close at $217.56 and is down 4% this week, putting it on track for its worst weekly performance in over a month. 

NVDA Analysts Expect ‘Beat-And-Raise’ Quarter

The chip giant will report fiscal second-quarter 2027 results after the closing bell on Aug.26. Jefferies called demand signals “rock-solid,” citing stronger cloud revenue at Microsoft and Amazon, SpaceX’s upcoming all-Nvidia deployment and OpenAI’s compute commitments through 2030. It expects a beat-and-raise quarter driven by Nvidia’s “low valuation and new product cycle,” though the likely upside “seems well understood.”

Stifel reiterated its ‘Buy’ rating and $282 target, implying a 30% upside, as hyperscaler spending and AI infrastructure orders remain strong. Its supply-chain checks indicate GB300 demand could hold into early 2027 as Vera Rubin ramps. Meanwhile, Morningstar’s $280 fair value implies a 29% upside, driven by data-center revenue potentially exceeding $300 billion in 2026 and $500 billion in fiscal 2028.

TD Cowen, however, warned that earnings may not resolve questions around margins, product timelines and AI spending. “Earnings that should have been a positive catalyst for the stock haven’t been in recent quarters,” the brokerage said.

NVDA Q2 Preview

Fiscal.ai expects Nvidia to report revenue of $91.48 billion, more than double the $45.55 billion recorded a year earlier. Adjusted earnings are projected to hit $2.07 per share, up from $1, while earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to climb to $61.83 billion from $27.58 billion.

On a sequential basis, Koyfin estimates that revenue will rise nearly 13% to $92.01 billion. Adjusted earnings are forecast to increase 11% to $2.08 per share, while EBITDA is expected to grow 13% to $62.09 billion. Investors will also track Nvidia’s gross margins as high-bandwidth-memory costs increase, alongside updates on China sales and the Rubin Ultra roadmap. 

Nvidia Expands Its Role As AI Financier 

Nvidia’s growing role as a financier of the AI ecosystem could become one of the earnings call’s most closely watched topics. The company recently entered partially backstopped arrangements involving $500 billion with large asset managers to mobilize funding for AI computing infrastructure. Smaller deals with Sharon AI and Firmus point to an emerging strategy in which Nvidia helps finance data-center projects that ultimately buy its hardware.

Nvidia is also reportedly considering an investment in AI data-labeling startup Mercor at a potential $20 billion valuation. Nvidia paid Mercor tens of millions of dollars last quarter for expert-curated data used in its Nemotron models. The chipmaker deployed $18.6 billion into private companies and infrastructure funds during the quarter ended in April, exceeding its investment total for the entire previous year.

How Do Retail Traders Feel About NVDA?

On Stocktwits, retail sentiment for NVDA deteriorated further to ‘extremely bearish’ from ‘bearish’ levels a day ago amid a 12% rise in 24-hour message volume.

One user said, “$NVDA Historically never been up during Earnings. Still holding and hoping for the best”

Another user said, “$QQQ would feel much better about big long bets if $NVDA were in 190s heading into the print.  Going to be a double beat but this cheap computer overhang a tough sell over 215.”

Nvidia is the best-performing “Magnificent Seven” stock this year, tied with Apple at a 17% gain. 

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