Nvidia (NVDA) is set to report its fiscal second-quarter 2027 results on August 26 after the market close. Wall Street expects earnings of $2.08 per share, nearly double the year-ago figure of $1.05. Revenue is expected to jump roughly 97% year-over-year to $91.90 billion. Nvidia’s stock has fallen after each of its past four earnings reports, despite beating Wall Street’s estimates.
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200% short exposure to NVDA with NVDSThe setup remains favorable for Nvidia, but the high expectations raise the bar for another post-earnings rally. Strong AI demand, tight GPU supply, and robust spending from major cloud companies support the bull case. However, Nvidia’s recent rally means investors may already be pricing in a strong quarter.
NVDA Stock’s Post-Earnings Track Record
The sharpest decline came after Nvidia’s Q4 FY26 report, when shares fell 5.46% the following day. Nvidia stock also declined 3.15% after the Q3 FY26 results, while the Q2 FY26 and Q1 FY27 reports resulted in smaller declines of 0.79% and 1.77%, respectively.
Source: TipRanks Data
This pattern highlights the challenge facing Nvidia: beating estimates alone may not be enough to lift the stock. The key question is whether Nvidia’s results and guidance are strong enough to exceed the market’s already-high expectations.
TipRanks Options Traders Tool suggests that the options market is pricing in a 6.99% post-earnings move in NVDA stock.
What to Watch in Nvidia’s Q2 Results
Recent results from AI infrastructure companies have reinforced the view that demand for AI accelerators remains strong. CoreWeave (CRWV), a major Nvidia customer, reported 112% year-over-year revenue growth in Q2 and a backlog of more than $104 billion, highlighting continued demand for AI infrastructure.
Investors will also focus on Nvidia’s outlook for its next-generation Rubin platform, GPU supply, gross margins, and demand from hyperscalers, AI labs and sovereign customers. Competition from Advanced Micro Devices (AMD) and custom AI chips will also remain on the radar.
Recently, Goldman Sachs analyst James Schneider reiterated his Buy rating and $285 price target, implying 26.5% upside potential. He believes that investors will want more details on Nvidia’s recently announced $500 billion financing plan with partners to support AI infrastructure buildouts. Schneider will be looking for evidence that Nvidia’s Rubin platform is gaining adoption among new customer groups, including AI labs, neocloud providers, and sovereign customers.
A strong ramp could provide another leg of growth following the Blackwell rollout. Schneider also expects investors to focus on Nvidia’s growing CPU business as agentic AI drives demand for additional computing infrastructure.
Is NVDA Stock a Good Buy?
On TipRanks, NVDA has a Strong Buy consensus rating based on 36 Buys and one Hold rating. The average Nvidia price target of $309.94 implies 37.6% upside potential from current levels. Year-to-date, NVDA shares have gained 21%.
