Nvidia's Q2 Overview: The Unexpected GB300 Reveal
Nvidia's Q2 Earnings Approach: Strong Growth and Bullish Outlook
Nvidia, the tech giant renowned for its graphics processing units (GPUs) and AI technology, is gearing up for its Q2 earnings report next week. According to analyst predictions, the company is expected to deliver strong earnings and revenue growth, setting the stage for an exciting quarter.
The expected EPS for Q2 FY26 is approximately $1.00 to $1.01, representing a significant 47% year-over-year increase. Revenue forecasts are equally impressive, with predictions of $45.87 to $46.05 billion, up about 50-53% year-over-year.
This robust growth is primarily driven by the surging demand for Nvidia’s AI chips, particularly in hyperscale data centers and new government AI partnerships. The company is also ramping up production of its new GB300 chip and Blackwell AI supercomputers, which are expected to sustain double-digit revenue growth.
Nvidia's recent market performance reflects these strong earnings and revenue expectations. The company has been one of the top-performing stocks in 2025, with shares nearly doubling in value since April and hitting all-time highs. Analysts remain bullish, with several raising their price targets to around $210-$215 and maintaining Buy ratings, suggesting an estimated upside of about 13% from current levels.
In addition to Nvidia, other tech companies are also seeing growth in the AI sector. Foxconn's AI server business, for instance, is expecting a more than 170% year-over-year increase in revenue, with rack shipments growing threefold quarter-over-quarter. Wistron, an ODM server vendor, also expects its AI server shipments to rise three times sequentially.
China, although accounting for under 20% of Nvidia's revenues, remains a significant market. However, there are uncertainties regarding trade to the region due to the Chinese government's reported discouragement of the use of H20 chips and export regulations.
Despite these challenges, the analyst remains optimistic about Nvidia's future. The analyst upgraded Nvidia in May as the headwinds turned into tailwinds, and expects a 12-14% beat-and-raise over the next two quarters, with Nvidia's shares potentially reaching $203 per share. For Q3 FY26, the analyst predicts an EPS of $1.2 on revenues worth $52.5 billion.
In conclusion, Nvidia's strong earnings and revenue expectations, coupled with its continued market outperformance, position the company well for a successful Q2 earnings report. The company's focus on AI technology and networking products, along with the growing demand in these sectors, bodes well for its future growth.
| Metric | Q2 FY26 Estimate | YoY Growth Approx. | |------------------------|-------------------------------|----------------------------| | Earnings per Share | $1.00 - $1.01 | +47% | | Revenue | $45.87B - $46.05B | +50% to +53% | | Stock Price Targets | $210 - $215 | ~13% upside potential |
- The strong growth in Nvidia's earnings and revenue is attracting significant investment from the finance sector, contributing to a bullish outlook for the technology company.
- The government's increased investment in AI technology has created new partnership opportunities for Nvidia, a significant factor fueling the growth of its AI chips in hyperscale data centers.
- As Nvidia's Q2 earnings report approaches, analysts are advocating for increased investing in the tech giant's shares, with price targets set at around $210-$215, based on their optimistic forecasts for the company's ongoing growth in AI technology.
