Prediction: Nvidia Stock Will Skyrocket After Aug. 27

Core Viewpoint - Nvidia has experienced a remarkable stock rise, increasing from a market capitalization of $350 billion at the start of 2023 to nearly $4.5 trillion, driven by the high demand for GPUs amid the AI arms race [1]. Group 1: Earnings Expectations - Nvidia is set to report Q2 FY 2026 results on August 27, with expectations that the earnings report could lead to significant returns for shareholders [2]. - The company's revenue growth is projected to slow to around 50% for Q2, but there are potential catalysts for reacceleration in the following quarter [6][10]. Group 2: China Business Impact - The revocation of Nvidia's export license for H20 chips in April resulted in a write-off and an estimated $8 billion in lost sales for Q2, which significantly impacted growth projections [7][8]. - Nvidia has announced plans to reapply for its China export license, with indications from the U.S. government that it will be granted, potentially boosting growth in Q3 [9]. Group 3: Market Demand and Capital Expenditure - Major tech companies have increased their capital expenditure projections for data centers, which is favorable for Nvidia as its GPUs are widely used in these facilities, indicating sustained demand [11]. - Despite the impressive projected growth rate of 50%, Nvidia's stock is becoming expensive, trading at 43 times forward earnings, which is near its historical peak [12][14]. Group 4: Future Outlook - The return of the China business is expected to drive Nvidia's growth projection and stock performance, with a strong outlook anticipated following the earnings announcement [15].