Nvidia eyes 22% upside before Q2 earnings

Nvidia faces another earnings report as analysts expect strong AI chip demand and a sizable price upside.

Nvidia Sets Up 22 Percent Upside Ahead of Q2 Earnings

Nvidia will report its Q2 FY26 results after the close on August 27. TipRanks AI Stock Analysis assigns Nvidia an 84 out of 100 with an Outperform rating and a price target of 213 dollars, implying about 22% upside from current levels. Analysts expect earnings of 1.01 dollars per share and revenue around 45.9 billion dollars. The company also signals a GB300 shipment ramp this quarter with fuller production next quarters, underpinned by sustained hyperscale AI demand. The market has seen several analysts raise targets, reflecting strong momentum in GPU demand even as supply tightness persists.

Beyond the numbers, investors face potential policy and geopolitical headwinds. A 15% export tax on AI hardware and pressure for China to favor domestic chips could weigh on the guidance and regional sales. Still, the overall demand backdrop remains strong, and Nvidia has benefited from a broad upcycle in AI investment this year. Year to date, Nvidia shares have risen sharply, underscoring high expectations for continued growth.

Nvidia sits at the center of the AI hardware boom, a position that brings both upside and risk. The GB300 ramp could boost margins if production scales smoothly, but it also raises execution risk if supply cannot meet demand. Policy shifts and export controls could temper the pace of growth, especially in China. Valuations remain lofty, and a single soft quarter could trigger a revaluation. Investors should weigh near-term catalysts against longer-term science and policy risks in AI.

The stock market still treats Nvidia as a benchmark for AI exposure, making any setback in earnings or guidance more impactful. The focus now shifts to margins, product cycles, and how policy dynamics unfold in key regions. This is not just a quarterly story; it is a test of Nvidia's staying power in a fast-changing tech landscape.

Highlights

Momentum will be tested in the next earnings phase.