Nvidia ahead of earnings: EPS estimates, RSI, valuation and analyst targets as NVDA heads into its August 26 fiscal Q2 report.
Nvidia (NVDA) shares are drifting slightly lower as investors position themselves nvidia ahead of earnings, with the AI chipmaker due to report fiscal second quarter results after the closing bell on August 26. Analysts polled expect earnings per share of $2.01, more than double what Nvidia posted in the same quarter a year ago, and the stock still holds a gain of nearly 15% since the start of the year despite the recent softness.
Valuation, Momentum and Yield Ahead of Nvidia's Report
At roughly 18 times forward earnings, Nvidia trades at a level BMO Capital Markets analyst Harsh Kumar calls a discount given what he expects from the company's next generation Vera Rubin NVL72 systems, which are set to ramp in the second half of the year. Kumar has a $340 price target on the stock, implying almost 60% of upside from current levels, and calls Nvidia his top pick for AI exposure. The broader Wall Street consensus lands at Strong Buy, with an average price target near $304, suggesting more than 40% potential upside.
On momentum, Nvidia's relative strength index sits in the low 50s, a reading that leaves plenty of room before the stock would be considered overbought. Shares are trading above their major moving averages across several timeframes, a pattern that typically points to buyers still in charge. Options traders appear to share that view: the put to call ratio on contracts expiring August 28 sits at 0.69, and Barchart data shows the upper strike price on those contracts above $226, implying traders see potential for a move of more than 5% in the session following earnings.
Yield is a smaller part of the story. Nvidia pays a dividend yield of just 0.47%, modest by any measure, but the company backed it in May with an $80 billion stock buyback authorization that has helped support investor interest in the shares even as the stock digests a recent pullback.
Bull Case Versus the Risks Lurking in the Print
The bullish argument centers on growth simply continuing. Doubling earnings per share year over year, a forward multiple some analysts consider cheap relative to that growth, and a fresh product cycle in Vera Rubin systems all give bulls reasons to expect the stock to keep climbing. Strong Buy ratings from Wall Street and a price target well above the current share price reinforce that framing.
The bear case is less about the fundamentals and more about expectations. Nvidia has become so central to the AI trade that even a solid quarter can disappoint if guidance falls short of the lofty numbers built into the stock. A market cap in the trillions means any stumble in data center demand, export restrictions, or competitive pressure from custom AI chips could trigger an outsized reaction. The stock's history of double digit swings after earnings, in either direction, means the setup cuts both ways heading into August 26.
Frequently Asked Questions
Is nvidia a buy before earnings?
Wall Street's consensus rating is Strong Buy, with an average price target near $304, though the report itself carries the usual earnings volatility risk.
Is nvidia a buy ahead of earnings?
Analysts including BMO's Harsh Kumar view the stock favorably at current levels, citing a forward multiple of about 18 times earnings and upcoming product cycles, though this reflects analyst opinion rather than a guarantee of performance.
Is nvidia expected to beat earnings?
Consensus estimates call for $2.01 in earnings per share, more than double last year's figure for the same quarter, and options market positioning suggests traders are leaning toward a positive surprise.
What time will nvidia report earnings?
Nvidia is scheduled to release its fiscal second quarter results after the market closes on August 26.
What can i expect from nvidia earnings?
Investors will be watching data center revenue trends, guidance tied to the Vera Rubin NVL72 ramp, and commentary on AI chip demand, alongside the headline EPS figure compared with the $2.01 consensus.
