Nvidia Set to Beat Earnings Expectations, Raises Revenue Forecast
Nvidia Corp (NASDAQ:NVDA) is set to report its second-quarter earnings on August 26, and Bank of America analysts are optimistic about the chipmaker's prospects. In a note maintaining their Buy rating and $350 price objective on the stock, BofA analysts expect Nvidia to post revenue of $94 billion to $95 billion, a $3 billion to $4 billion beat above its own guidance.
The analysts also predict that Nvidia will raise its outlook for future revenue, with a new forecast of $107 billion to $108 billion. This is significantly higher than the roughly $104 billion that Wall Street analysts are currently modeling.
BofA attributes this optimism to several factors, including the rollout of Nvidia's next-generation Vera Rubin platform and strong cloud capital spending trends. The firm also notes that spot prices for renting GPU capacity have hit all-time highs, which could ease concerns about return on investment and speed up adoption of new chips.
Nvidia has faced criticism over its direct stakes in customers like OpenAI and Anthropic, but BofA argues that these investments are not artificially inflating demand. The firm points out that the $70 billion invested so far is just 15% of the $470 billion in free cash flow it expects Nvidia to generate in 2026 and 2027.