Earnings Preview: Nvidia results and outlook could rock AI stocks
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Nvidia to announce quarterly earnings after US markets close Wed, Aug 26
Share price of world's most valuable company forecasted to move 4.6% up/down
Nvidia stocks may only be boosted by fresh upside surprise; “good enough” may no longer suffice
Investors becoming increasing demanding, asking longer-term questions about margins, competition, and circular financing risks
Bybit clients can react LIVE to Nvidia's earnings via CFDs and perpetual contracts.
Nvidia is the world's biggest company, valued at US$ 5.2 trillion!
READ MORE (published July 17th): Apple vs. Nvidia - Which will end 2026 as "world's most valuable company"?
Nvidia reports its Q2 FY2027 results after US markets close on Wednesday, Aug 26th.
This is a closely-watched event as Nvidia is also at the epicenter of the global AI buildout.
Overview: Nvidia Earnings
Analysts broadly expect another "beat and raise" quarter - meaning Nvidia beats its own revenue guidance and then sets an even higher bar for next quarter.
But here's the twist ...
A strong result alone may not be enough to move the stock meaningfully higher.
Investors are increasingly focused on longer-term questions — about margins, competition, and whether Nvidia's AI financing deals create conflicts of interest.
Key Themes to Watch
Blackwell Ultra demand: Nvidia's latest Blackwell Ultra chips are driving the bulk of near-term revenue. Watch whether demand commentary gets stronger or shows any signs of softening.
Vera Rubin - the next big thing: Nvidia's next-generation Vera Rubin (VR200) chips are expected to begin ramping in Q3 FY2027. Any update on the pace of that ramp — and the even newer Vera Rubin Ultra (VR300) - will be closely watched as a signal for Nvidia's 2027 earnings power.
Revenue beat expectations: Analysts expect Q2 revenue to come in around $93–94 billion - already well above Nvidia's own guidance - with some projecting a beat of $3–4 billion above consensus.
Watch for Q3 revenue guidance: analysts are looking for $107–108 billion.
Gross margins: Margins are expected to hold in the 73–75% range. Any compression here - especially as Vera Rubin ramps and memory costs rise - would be a key concern for investors.
The $1 trillion pipeline: Nvidia disclosed a $1 trillion+ combined Blackwell + Rubin order pipeline back in March 2026. Investors will want an update on how much of that has been recognised as revenue - and how much remains ahead.
Circular financing risk: Nvidia has teamed up with major financial institutions to help fund over $500 billion in AI infrastructure - some of which flows back to Nvidia as revenue. Investors are asking whether this creates a conflict of interest, and management will likely be pressed on this.
Price hikes incoming: Nvidia has reportedly notified some of its biggest customers that server prices will rise more than 15% on systems shipped early next year - covering Vera Rubin and Grace Blackwell systems. Watch for any customer reaction or demand impact commentary.
China & export restrictions: Any update on China accelerator sales - currently restricted by US export controls — remains a wildcard. Even limited China upside could be a positive surprise.
Potential Scenarios
Markets predict that Nvidia's share prices will react with a 4.6% move up/down following its earnings results.
IMPORTANT: Bybit clients can react to the live announcements via CFDs and perpetual contracts.
UPSIDE: Nvidia may rally toward ~$225.13 if Q2 revenue beats expectations, Q3 guidance comes in above $107 billion, and management delivers a confident update on the Vera Rubin ramp - reassuring investors that the next leg of growth is firmly on track while diluting concerns over circular financing risk and regulatory restrictions.
DOWNSIDE: Nvidia may slide toward ~$205.33 if gross margins disappoint, Q3 guidance underwhelms, or management fails to address investor concerns around circular financing and longer-term competition from custom AI chips.
Wall Street's 12-month consensus analyst target for Nvidia sits at $314.26 - about 46.4% above Friday's (Aug 21st) close.
NOTE: That 12-month price target may shift significantly depending on what management says about its revenue trajectory and margin outlook. Watch for analyst recommendation revisions post-earnings.
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