Nvidia's Unstoppable Growth May Not Be Enough to Impress Investors

Nvidia is set to report its fiscal 2027 second-quarter earnings on August 26. Wall Street expects revenue to surge 97% year over year to $92.07 billion, with adjusted earnings per share of $2.09, up from $1.05 a year earlier. The company's own guidance called for $91 billion, plus or minus 2%, implying roughly 95% growth.

Nvidia's data center business remains the growth engine, driven by strong demand for GPUs in artificial intelligence applications. CEO Jensen Huang has projected that total sales of Blackwell and Rubin GPUs will reach $1 trillion between 2025 and the end of calendar 2027, excluding any contribution from Vera Rubin CPUs.

However, Nvidia's outstanding performance may not be enough to impress investors. The company has beaten analyst estimates for 13 consecutive quarters, but a beat is no longer news; it's now embedded in the stock price. Over the past year, Nvidia shares have fallen after every quarterly report, even when earnings topped forecasts and guidance was raised.

Investors are looking forward to management commentary on near-term prospects, particularly regarding China sales. The company explicitly excludes data center revenue from China from its guidance, so any signal of optimism about AI chip sales in that market could boost the stock.