Nvidia Q2 Earnings Expected to Bring 10% Upside; Here's How to Invest with ETFs

Nvidia (NVDA) is expected to report Q2 revenue of $45.94 billion and EPS of $1.00, reflecting a 53% revenue jump and 47% EPS gain YoY. Analysts see over 10% upside ahead of earnings, making this a buying opportunity for investors. To invest in NVDA without risk, consider VanEck Semiconductor ETF (SMH) or iShares Global Tech ETF (IXN), which provide diversified exposure to NVDA and other major tech companies.

Nvidia Corporation (NVDA) is poised to release its Q2 FY 2026 earnings report, with analysts anticipating robust financial performance. According to Stifel's top analyst, Roy, Nvidia is expected to deliver another strong quarter, with Q2 revenue projected at $45.8 billion, slightly above the company's own outlook. This represents a 53% year-over-year (YoY) increase in revenue [1].

The positive outlook is driven by strong demand for Nvidia's AI hardware, with supply issues remaining limited. Despite concerns about an "AI bubble" and a slower-than-expected GPT-5 launch, analysts remain bullish on Nvidia's prospects. Twelve out of 13 Wall Street analysts recommend the stock as a "buy," with price targets ranging from $155 to $225 [1].

Nvidia's strong performance is attributed to the continued growth in its Data Center business, which benefits from the increasing adoption of cloud-based solutions and the growing hybrid working trend. The company's AI chips, including the A100, H100, B100, B200, and GB200, are the top choices for building and running powerful AI applications, positioning Nvidia as a leader in the generative AI market [1].

However, Nvidia faces potential headwinds from China export curbs, which could result in an $8 billion hit. The company has reportedly told suppliers to suspend production of its H20 chip due to security concerns raised by Beijing [3]. This move is expected to impact the company's revenue, particularly in its data center business, which has been a primary growth engine.

Analysts remain optimistic about Nvidia's future. UBS analyst Timothy Arcuri recently raised his price target to $205 from $175, citing strong demand signals and projecting another beat in the upcoming Q2 earnings report [2]. Despite the challenges, Nvidia's strong product portfolio and leadership in AI make it a compelling investment opportunity.

To invest in Nvidia without taking on significant risk, consider VanEck Semiconductor ETF (SMH) or iShares Global Tech ETF (IXN), which provide diversified exposure to Nvidia and other major tech companies.

References:
[1] https://finance.yahoo.com/news/nvda-buy-nvidia-stock-aug-192124545.html
[2] https://www.ainvest.com/news/ubs-raises-nvidia-price-target-205-q2-earnings-2508/
[3] https://www.tweaktown.com/news/107313/nvidia-spectrum-xgs-connects-data-centers-in-different-cities-to-create-ai-super-factories/index.html