Nvidia's Q2 Earnings Set to Shine with Strong Data Center Revenue
Nvidia is set to release its fiscal second-quarter 2027 earnings report on August 26, and Morningstar analysts have weighed in on what investors should expect. The company's stock appears undervalued, with a fair value estimate of $280 per share.
Morningstar expects Nvidia to generate over $300 billion of data center revenue in calendar 2026, which is effectively fiscal 2027, and perhaps over $500 billion in fiscal 2028.
Analysts will be looking for updates on sales into China and the pace of Nvidia's expansion and roadmap. They also want to hear more about the company's partnerships, including its recently announced mobilization of large financial asset managers to invest in artificial intelligence.
Nvidia has a wide economic moat due to its intangible assets around graphics processing units and high customer switching costs around its proprietary software, Cuda. The company's superior GPU hardware for AI, its software ecosystem, and its networking and interconnectivity expertise should keep it at the forefront of AI workloads.