Bullish Sentiment Remains Strong Ahead of Nvidia Earnings

Nvidia stock is trading lower ahead of its fiscal Q2 earnings release on August 26. The semiconductor giant is expected to record $2.01 in earnings per share, more than double what it posted for the same quarter last year.

The technical setup heading into Nvidia's earnings is largely bullish, with shares trading above major moving averages and a relative strength index (RSI) in the low 50s indicating massive upside room.

BMO Capital Markets analyst Harsh Kumar has dubbed Nvidia shares a 'Top Pick' for AI exposure, reiterating a $340 price target that signals potential for a nearly 60% upside from current levels.

The consensus rating on Nvidia sits at 'Strong Buy,' with a mean price target of about $304 indicating more than 40% upside potential. The company's recent $80 billion stock buyback plan and small dividend yield of 0.47% make its stock a compelling long-term holding.