Nvidia earnings preview boosts investor expectations

Morgan Stanley reiterates a Buy rating on Nvidia and lifts its price target ahead of Nvidia's Q2 FY26 results, citing strong demand and improved supply.

Analyst Boost for Nvidia Ahead of Q2 Earnings

Nvidia is scheduled to report its Q2 FY26 earnings on August 27. Wall Street analysts expect earnings per share of $1 on revenue of about $45.81 billion. Morgan Stanley’s top analyst Joseph Moore reaffirmed his Buy rating and raised the price target to $206, signaling potential upside. He attributes Nvidia’s strong 2026 outlook to rising demand, better supply, and a solid competitive position.

Moore also has raised his 2026 revenue and earnings estimates, driven by continued cloud demand and aggressive AI investments. He points to robust demand from hyperscale cloud customers and notable spending from smaller buyers as signs that growth will continue into 2026. On the supply side, he notes improvements in Blackwell GPU production and testing, with shipments expected to rise through late 2025 and into 2026. He also cautions that revenue from China may be limited in the October quarter, though some H20 licenses have been approved. Overall, Moore maintains Nvidia’s lead in the market and sees continued momentum as AI infrastructure expands.

The upgrade signals investors’ optimism about Nvidia’s ability to convert strong AI demand into durable growth. Yet the story hinges on supply discipline and the pace of cloud deployment, not just raw demand. As Nvidia navigates a busy AI hardware cycle, its advantage rests on a broad ecosystem—software, services, and rack connectivity—that keeps rivals in a perpetual chase. If China revenue remains constrained or if supply delays reappear, the upside could narrow even as the core growth trend stays intact.

Highlights

As Nvidia navigates rapid AI-driven expansion, a steady gain will depend on supply resilience and global demand turns.