Nvidia Faces Crucial Q2 Earnings Report Amid Seven-Day Losing Streak

Nvidia has been in the red for seven days straight, but analysts are still optimistic about its future performance. The company is set to report its Q2 earnings on August 26th after hours. Despite the recent downturn, Wall Street's expectations remain high, with a consensus revenue forecast of $1.035 billion to $1.04 billion for the third quarter.

This figure may not be impressive enough to beat market expectations. According to Bloomberg Consensus, the average revenue forecast for Q3 is around $1.05 billion. Nvidia's own guidance suggests that its Data Center segment in China will be zeroed out in Q2, but this could become a positive surprise if the H200 chip sees strong demand.

The company's Networking business is expected to drive growth, with revenue from this segment projected to reach $6.01 billion in 2027 and $8.10 billion in 2028. Nvidia also expects its non-GAAP gross margin for Q2 to be around 75%, with a possible variance of 50 basis points.

The success of the Rubin project, which is expected to start production in late 2026, will be crucial for Nvidia's growth in 2028. Analysts are watching closely for signs that customers are delaying their purchases of Blackwell Ultra to wait for Rubin instead.