Nvidia Faces High Expectations Following AMD and SanDisk Earnings
August's earnings season kicked off on a high note for AMD and SanDisk, but investors' expectations were not met. Despite record revenue growth of 50% year-over-year for AMD and an astonishing 372% year-over-year increase in revenue for SanDisk, both stocks fell. The reason behind this disconnect is the market's high standards for perfection.
AMD's data center revenue more than doubled, but its CEO Lisa Su stated that she expects further acceleration in the second half of 2026. SanDisk's earnings also beat consensus expectations, with a 12% higher EPS and 78% gross margins. However, both companies' guidance for the upcoming quarter fell short of 'whisper' estimates.
The market reactions to AMD and SanDisk's earnings reports set a high bar for Nvidia's (NASDAQ:NVDA) upcoming report on August 26. If AMD can more than double its data center revenue and still disappoint, and if SanDisk's margins can hold at 78% and still fall short of expectations, Nvidia's investors will be closely watching for guidance on the next-generation ramp and supply constraints.
Nvidia guided Q2 fiscal 2027 revenue to approximately $91 billion, a significant increase from previous years. The company must meet or exceed this target to satisfy investors' high expectations. If it fails to do so, Nvidia may face similar market reactions as AMD and SanDisk.