Nvidia shares surge ahead of Q2 earnings, with analysts predicting a "beat-and-raise" quarter and strong demand for AI infrastructure.

Nvidia's stock rose 2% after several major Wall Street firms raised their price targets ahead of the chipmaker's second-quarter earnings. Analysts pointed to strong demand for AI infrastructure and Nvidia's Blackwell platform as key drivers of potential growth. Morgan Stanley sees shares reaching $200, while Bank of America and Goldman Sachs raised their targets to $220 and $200, respectively. Estimates suggest Nvidia will post earnings of $1 per share on $45.7 billion in revenue.

Nvidia (NASDAQ:NVDA) shares climbed 2% on Thursday morning as several major Wall Street firms raised their price targets ahead of the chipmaker's second-quarter earnings, set for August 27. Analysts from Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), and Goldman Sachs (NYSE:GS) pointed to strong demand for artificial intelligence (AI) infrastructure and Nvidia's Blackwell platform as key drivers of potential growth [1].

Morgan Stanley now sees shares reaching $200, up from $170, while Bank of America reaffirmed its Buy rating and maintained a $220 target. Goldman Sachs lifted its target to $200, citing expectations for a beat-and-raise quarter [1]. Analysts flagged investor focus on Blackwell's chip ramp, margin expansion potential, and China's H20 chip rollout [2].

Estimates compiled by FactSet suggest Nvidia will post earnings of $1 per share on $45.7 billion in revenue. The stock is up nearly 34% year to date. Nvidia also inched up 1% in premarket trading as optimism builds heading into the earnings call [1].

Goldman Sachs analyst James Schneider expects Nvidia to exceed revenue and earnings estimates, driven by robust AI chip demand and solid execution [3]. He points to three key areas for investors to watch: Blackwell and Rubin chips, H20 chip compliance in China, and gross margins [3].

The broader chip sector also showed strength ahead of the earnings release, with TSMC and Samsung gaining as investors anticipated Nvidia’s $500 billion U.S. AI investment and Blackwell production at TSMC’s Phoenix facility [4].

Nvidia’s stock has surged 34% year to date, and maintaining that growth will require earnings to match investor optimism. If margins hold, the valuation can expand further [3].

Analysts from FactSet expect Nvidia to report $1 per share in profit on $45.7 billion in revenue in the second quarter [1]. The company will need to meet or exceed these expectations to justify its current valuation. Any updates on China-related sales or margin performance could significantly influence the stock’s direction after the call [4].

References:
[1] https://finance.yahoo.com/news/nvidia-stock-climbs-wall-street-182529601.html
[2] https://www.fingerlakes1.com/2025/08/08/nvidia-price-today-august-8-2025/
[3] https://www.ainvest.com/news/nvidia-price-targets-rise-ai-momentum-earnings-2508/
[4] https://www.cnbc.com/2025/08/07/thursdays-top-stocks-from-analyst-calls-include-nvidia.html