Should You Buy Nvidia Stock Before Aug. 27?

Core Viewpoint - Nvidia is expected to report strong earnings for Q2 fiscal 2026, driven by significant demand for its GPUs and increased capital expenditures from major tech companies [1][2][12]. Group 1: Earnings Expectations - Nvidia holds a dominant 92% market share in the GPU market, which is crucial for data centers and AI applications [4]. - Analysts predict Nvidia's Q2 revenue to be $45.75 billion, a 52% increase from $30.04 billion a year ago, with earnings per share (EPS) expected to rise to $1.00 from $0.68, reflecting a 47% improvement [6]. - Major customers like Meta Platforms, Alphabet, and Microsoft are increasing their data center spending, which bodes well for Nvidia's revenue growth [5]. Group 2: Market Reactions and Historical Performance - Nvidia's stock has historically jumped following positive earnings reports, with a consistent addition of approximately $5 billion in revenue each quarter [10][11]. - The company has experienced solid post-market performance, with stock drops primarily linked to external factors like tariffs rather than demand for its products [11]. - Nvidia's market capitalization currently stands at $4.4 trillion, indicating strong investor confidence [11]. Group 3: Strategic Developments - Nvidia is expected to provide updates on a deal with the White House that allows it to sell H20 AI chips in China, which could significantly impact future earnings [7][8]. - The company previously incurred a $4.5 billion charge due to restrictions on selling these high-performance chips, making the new deal crucial for its financial outlook [7].