Nvidia Earnings Preview: Can the Company Sustain Its Growth Momentum?
Nvidia is set to release its second-quarter fiscal 2027 financial results on August 26, and Wall Street expects another 'beat-and-raise' earnings report. However, with four consecutive quarters of post-earnings drops, investors are focusing on whether the company can sustain its growth and profit margins.
The data center demand remains strong, driven by cloud vendors and enterprise clients' need for computing power procurement. Asian supply chain research indicates an increase in 4nm wafer starts for Blackwell, suggesting that current revenue models may be conservative.
Nvidia's gross margin guidance is set at 74.9%, plus or minus 50 basis points, while Morgan Stanley expects the company's second-quarter revenue to reach $91.1 billion and earnings per share of $2.07. The Vera Rubin platform has entered mass production, with partners expected to supply products in the second half of 2026.
The key variables for Nvidia's success are its ability to maintain a gross margin in the 'mid-70%' range and sustain demand for Blackwell Ultra without a transition gap between product generations. Additionally, the company's revenue share from the Chinese market, which dropped to a single-digit percentage in the previous quarter, may become an unexpected variable.