University of Kwazulu-Natal

Prediction Nvidia Stock Is Going To Soar After Aug 27

Bonisiwe Shabane
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prediction nvidia stock is going to soar after aug 27

Written by Harsh Chauhan for The Motley Fool-> Nvidia will release its quarterly results after the market closes on Aug. 27. The chip giant is likely to exceed analysts' expectations thanks to recent developments. Nvidia could end up delivering solid guidance as well, and that could give the stock's rally a nice shot in the arm. Nvidia (NASDAQ: NVDA) stock made a remarkable recovery on the stock market since hitting its 52-week low on April 7, rising an incredible 83% in such a short period.

The good part is that the technology giant's parabolic run is likely to continue after Aug. 27, when it it releases its fiscal 2026 second-quarter results (for the three months ended July 27). Nvidia has seen remarkable performance and doubled its market cap to nearly $4.5 trillion this year due to the escalated level of its GPUs demand. Artificial intelligence depends on these chips and that need is only beginning. Although the revenue development of Nvidia has been slightly lower lately, normally it is very high. The company has projected that it will have a revenue growth of 50% in its upcoming quarter which is quite impressive given that it is a firm of its magnitude.

The rebound of its China business is one factor that makes investors hopeful of the future earnings of Nvidia. Nvidia previously lost billions in sales this year after export restrictions prevented it from selling some of its chips in China. The U.S. government is presently helping Nvidia to get approval to sell in China. This is likely to increase the sales to a great extent and see the growth rate of Nvidia move upwards once again. Moreover, there are numerous large technological corporations that are actively spending more on data centers, which Nvidia GPUs are fairly popular in.

The continuous demand is likely to enable Nvidia to achieve or surpass its revenue expectations in future. Nvidia recently became the world's largest company, thanks to booming sales of its data center chips. Some of Nvidia's biggest customers are on track to spend a record amount of money on AI data center infrastructure and chips this year. Nvidia will release its fiscal 2026 second quarter financial results on Aug. 27, and all signs point to another blowout result. Nvidia (NASDAQ: NVDA) stock has soared by 1,100% since the beginning of 2023, which is when the artificial intelligence (AI) revolution really started to gather momentum.

It's now the largest company in the entire world thanks to its market capitalization of $4.3 trillion, but I think its stock still has room for upside. Nvidia supplies the world's most powerful graphics processing units (GPUs) for data centers, which have become the gold standard for AI development. Tech giants like Alphabet and Meta Platforms recently told shareholders they plan to spend more on AI data center infrastructure this year than originally anticipated, and they are among the chipmaker's largest customers. Brace for liftoff: Nvidia's silicon-fueled rocket is about to ignite. While Wall Street analysts obsess over quarterly reports, Nvidia's real growth engine hums quietly in data centers worldwide. Their next-gen GPUs aren't just powering games—they're printing money in AI labs and crypto mines.

Mark your calendars for the undisclosed (but totally predictable) catalyst that'll send traders scrambling. Hint: It rhymes with 'earnings beat' and 'guidance raise'—the financial theater Wall Street loves. The bears have been wrong on Nvidia since the first Bitcoin ASIC hit the market. Now with AI workloads eating up every spare transistor, this train has no brakes—just ask the hedge funds still licking their 2023 wounds. While traditional investors debate P/E ratios, smart money's already positioned. Nvidia doesn't just ride tech waves—it creates them.

And after August 27? Let's just say the only thing rising faster than their stock price will be brokers' commission fees. The trade war with China was tough on Nvidia Corp. (NASDAQ: NVDA) investors. In April, shares hit a year-to-date low below $87 apiece. Like its fellow Magnificent 7 members, Nvidia struggled due to economic uncertainties about the effects of tariffs, as well as due to Chinese AI innovations.

Bears saw Nvidia stock falling further because of bearish pressure from the broader market. Yet, some investors remain optimistic for a sustained rebound, and lately that seems to have been the case. The stock returned to all-time highs as some tariff fears dissipated and macro data improved, and Nvidia became the first $5 trillion market cap company. The bearish argument that prevailed on Wall Street early this year is not entirely gone, though. While the AI rally may continue, it remains speculative, whereas the reasons for Nvidia stock’s decline in the spring were genuine. Given challenges such as being effectively locked out of China, Nvidia may still be at a crossroads right now.

We do not know for sure where the stock will go next, but with the data on hand, we can speculate. That’s what we are doing here. 1. AI Infrastructure Dominance: Nvidia controls an estimated 80% of the AI accelerator market through its H100/H200 GPUs and CUDA software ecosystem. It is tough for Nvidia customers to switch to another supplier. This has allowed the company to dominate the industry, with customers returning year after year.

As such, it is well-positioned to capture growth from the $400 billion AI chip market projected for 2030. 2. Data Center Expansion: Its data center revenue has surged from $4.3 billion in Q1 2023 to over $35.6 billion in Q4 2024. Maintaining leadership here requires continuous innovation in GPU architecture and energy efficiency as AI workloads grow exponentially. So far, Nvidia has managed to do that. 3.

Margin Preservation: One of the biggest arguments against Nvidia is that it may not be able to hold on to its massive margins as competitors catch up and become more attractive to Nvidia’s customers. This has not happened yet, and Nvidia has maintained its hold on the market quite well. In turn, this has allowed the company to have industry-leading gross margins at 73% in Q4 FY2025. Nvidia (NVDA) is set to release its latest quarterly results after the market closes today, with analysts expecting the most valuable company in the world’s sales could reach another record high, despite an anticipated... The AI chipmaker is projected to report adjusted earnings per share of $1.02 for the second quarter on an over 50% year-over-year jump in revenue to $46.52 billion, according to consensus estimates compiled by... CEO Jensen Huang could also provide more details during the company's earnings call about the timing of new products, including Nvidia's next-generation Rubin lineup and a more powerful AI chip tailored for China’s market.

In May, Nvidia warned it could face an $8 billion hit from China export restrictions, and although the company recently struck a 15% revenue-sharing agreement with the Trump administration to resume sales of its... Despite near-term trade policy headwinds, Wall Street analysts are overwhelmingly bullish on the chipmaker’s prospects. Of the 14 analysts with current ratings surveyed by Visible Alpha, 13 call the stock a "buy," compared to one "hold" rating. Their targets range from $155 to $225, with the majority above $200, suggesting significant upside from Tuesday's close around $182. "Expectations have risen ahead of Nvidia's earnings, and we think rightfully so," Morgan Stanley analysts said last week, as they raised their target to $206 from $200, citing strong AI demand signals. UBS also raised its target, to $205 from $175, while Wedbush boosted its to $210 from $175.

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