NVIDIA (NVDA) Set for Blowout Q2 Earnings: Will Blackwell and AI Demand Deliver?

NVIDIA Corporation (NVDA) is expected to report a blowout Q2 performance, driven by the ramp of Blackwell and robust cloud spend. BofA Securities analyst Vivek Arya reiterated a Buy rating and a $220 price target ahead of Nvidia's earnings print on August 27th. The firm cited projections of Nvidia's second-quarter sales, attributing the growth to the continued ramp of Blackwell and robust cloud spend.

NVIDIA Corporation (NVDA) is expected to report a strong second-quarter (Q2) performance, with sales projected to exceed $47 billion, according to a recent report. This figure surpasses the consensus estimate of $45.8 billion, driven by robust sales momentum and increased cloud infrastructure spending [1]. BofA Securities analyst Vivek Arya reiterated a Buy rating and a $220 price target ahead of Nvidia's earnings report scheduled for August 27th [4].

The beat-and-raise in Q2 revenue can be attributed to several key factors. The continued strength of the Blackwell and Blackwell Ultra products, rising AI-related capital expenditure (capex) from hyperscalers, and the potential $5-$10 billion upside from resumed H20 sales in the second half of the year are all contributing to the positive outlook [1]. Nvidia's data center division remains a significant driver of revenue growth, with the company's graphics processing units (GPUs) being essential tools across various sectors [1].

Analyst sentiment remains positive, with 43 out of 48 analysts rating NVDA as a Buy or Strong Buy. The average 12-month price target is around $181.27, with a low target near $100 and a high at $250 [1]. However, concerns about valuation, rising competition from AMD and Intel, and regulatory scrutiny around AI infrastructure have some investors questioning how much upside remains [1].

Looking ahead, Nvidia's trajectory will depend on its ability to maintain pricing power and operational scale in the face of intensifying competition. The company's leadership in high-performance computing and its deep integration in enterprise cloud stacks may support continued revenue expansion. Earnings reports, product roadmap updates, and regulatory decisions will serve as major catalysts in the months and years ahead [1].

References:
[1] https://www.ainvest.com/news/nvidia-q2-revenue-forecast-beats-consensus-analyst-raises-fy26-sales-210-215b-2508/
[2] https://www.ainvest.com/news/amd-q2-earnings-raises-concerns-ai-competitiveness-2508/
[3] https://www.investors.com/news/technology/nvidia-stock-rises-data-center-spending-strength/
[4] https://www.investing.com/news/analyst-ratings/nvidia-stock-price-target-maintained-at-220-by-bofa-ahead-of-earnings-93CH-4168146