Nvidia Stock Poised to Surge After August Earnings Report

Nvidia's fiscal 2027 second-quarter results are expected to be released on August 26, and analysts are predicting a strong performance. The company has underperformed the broader semiconductor sector this year, but a closer look at earnings reports from major hyperscalers suggests that Nvidia could get a boost when it releases its quarterly report.

A $2.3 trillion revenue backlog among top cloud service providers in the U.S. points to increased demand for Nvidia's chips. Analyst Vivek Arya notes that companies such as Microsoft, Oracle, Amazon, and Alphabet's Google need to invest aggressively in cloud computing capacity to meet their backlogs.

Nvidia is a major player in the AI accelerator market, with an estimated 80% to 90% share. The company's decision to sell its server CPUs on a stand-alone basis has unlocked a growth opportunity, and it is poised to deliver stronger-than-expected numbers and guidance when it reports earnings.

Analysts are expecting a 97% year-over-year increase in Nvidia's revenue in fiscal Q2 to almost $92 billion, along with a similar increase in earnings per share to $2.08. The company has guided for an increase in non-GAAP gross margin to 75%, suggesting that its bottom-line growth could exceed Wall Street's expectations.