Nvidia's AI-Powered Growth: Should You Buy Before Aug. 27?

Nvidia's quarterly results are highly anticipated, with the stock near an all-time high. Historically, Nvidia has outperformed after earnings, with a 14% average gain in the 5 days following earnings announcements. The company's data center segment, which includes AI chips, has been a major driver of growth. With strong secular tailwinds expected to continue, investors may want to consider buying Nvidia before its Aug. 27 earnings report.

Nvidia's (NVDA) second-quarter earnings report, scheduled for release after the market closes on Wednesday, August 27, is set to be a focal point for investors. The chipmaker has been at the forefront of the artificial intelligence (AI) boom, with surging sales driven by growing demand for its advanced offerings. Analysts anticipate record sales despite potential headwinds from China export curbs, which could impact the company's revenue by up to $8 billion [2].

The company is expected to report adjusted earnings per share (EPS) of $1.02 and revenue of $46.45 billion, representing a 50% year-over-year (YoY) increase [2]. Wall Street analysts are overwhelmingly bullish on Nvidia's prospects, with 12 out of 13 calling the stock a "buy" and price targets ranging from $155 to $225 [2].

Nvidia's strong performance is driven by the continued strength 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 [3].

Historically, Nvidia has outperformed after earnings announcements, with a 14% average gain in the 5 days following earnings releases [1]. With strong secular tailwinds expected to continue, investors may want to consider buying Nvidia before its Aug. 27 earnings report.

Investors should also keep an eye on the latest release of the Federal Reserve's favored measure of inflation, the Personal Consumption Expenditures Index for July, which could influence whether the central bank makes its first interest rate cut of the year in September [1].

References:
[1] https://www.investopedia.com/what-to-expect-in-markets-this-week-nvidia-earnings-a-key-measure-of-inflation-and-more-11795525
[2] https://www.ainvest.com/news/nvidia-set-report-q2-earnings-8-billion-china-hit-2508/
[3] https://finance.yahoo.com/news/nvidias-data-center-grows-fast-135300737.html