Nvidia Earnings Report Seen as Catalyst for Stock Rally
Nvidia investors have had a disappointing run so far in 2026. The stock has lost to the market, as measured by the S&P 500, and has only risen about 2% for the year while the S&P 500 is up around 7%. However, analysts expect Nvidia's earnings report on August 26th to be a turning point for the company.
Nvidia's success in AI data center build-out has been a major driver of its growth. The company supplies GPUs and other infrastructure and software to support these centers, and its products are considered the gold standard in AI computing. Demand for Nvidia's products continues to ramp up, with AI hyperscalers increasing their spending outlooks for 2026 and hinting that spending in 2027 will be even higher.
Wall Street analysts expect a 96% growth rate for Nvidia's revenue in the second quarter of fiscal year 2027. Given the company's strong track record of exceeding expectations, it is likely that its revenue growth rate will return to the triple-digit range. Analysts also estimate 81% revenue growth for Q3, but if Nvidia projects something in the 90% range again, the stock could see a quick rise.