Nvidia Earnings: Wall Street Eyes Sell-The-News Moment Amid Record-Breaking Expectations
Nvidia's upcoming earnings report on August 26 is expected to be a blockbuster performance for its second quarter fiscal 2027. The company's stock has been quietly gaining steam ahead of the event, with a rally that has pushed it only about 5% below its $236.54 52-week high.
Wall Street expects Nvidia to post revenue near $92 billion, a massive ~96% year-over-year jump driven by relentless demand from hyperscalers and enterprises for Nvidia's AI data center chips. Earnings per share are modeled to nearly double from last year to $2.08.
However, Goldman Sachs analyst James Schneider cautions that the market is positioned for Nvidia to post great results, which could create a sell-the-news moment. The stock has run up 65% in the past six months and has already gained ~12% in two weeks.
Schneider suggests that Nvidia can sidestep a sell-the-news earnings day if it provides evidence of improving profitability metrics at hyperscalers, measured capital outlays in support of customer financing platforms, and reiteration of strong capital returns.