NVDA Earnings Preview: Another Blowout Ahead, China & Guidance in Focus

On August 27 after the U.S. market close, “the most important company on Earth”

So far this year, Nvidia’s stock has climbed more than 30%, securing its position as the world’s most valuable company.

Market expectations are for quarterly revenue of $45.97 billion, up 53.03% year-on-year, and EPS of $0.935, up 39.51%. Analysts’ average price target is $198.

Looking at history, Nvidia has beaten revenue estimates every quarter for the past two years. The question is not whether it will beat, but by how much, and what management will signal about the future.

Data Center Spending Surges — Guidance is Key

With hyperscalers reporting strong capital expenditures, Nvidia faces no pressure in beating estimates.

Beyond the tech giants, OpenAI plans to stockpile more than 1 million GPUs by the end of 2025 to power GPT-5 and beyond. Though suppliers weren’t disclosed, who else but Nvidia could meet such demand?

Elon Musk’s xAI and numerous AI unicorns are also hoarding Nvidia GPUs.

The supply chain tells a similar story. TSMC’s advanced process nodes below 7nm continue strong growth, with Nvidia as its biggest customer.

Foxconn’s AI server revenue jumped 60% in Q2 and is projected to surge 170% in Q3.

TrendForce estimates 2025 global AI server shipments will rise 24.3% YoY, with a 27% CAGR from 2022–2027.

Crucially, Nvidia’s model isn’t just about one-off GPU sales. Its CUDA ecosystem locks in developers and enterprises, allowing continuous service fees and long-term recurring revenue — much like

China Market in Spotlight

Recently, Chinese state media criticized Nvidia’s H20 chip as neither green, advanced, nor secure. Reports followed that Nvidia halted H20 production.

China accounts for 13% of Nvidia’s revenue — a market Jensen Huang won’t give up easily. Nvidia is developing a new B30A chip based on its Blackwell architecture, roughly half the performance of the B300 but far stronger than H20. Samples may be ready as soon as September.

Noticeable,

Wall Street Puts Real Money Behind Nvidia

Ahead of earnings, Wall Street’s biggest institutions increased holdings in Nvidia. In Q2,

The number of institutions with Nvidia as a top-ten holding jumped from 1,769 to 2,158, up 22% quarter-over-quarter.