NVIDIA to Post Q2 Earnings: Buy, Hold, or Take Profits?

Core Viewpoint - NVIDIA Corporation is poised to report its fiscal 2026 second-quarter earnings, which are anticipated to be significant due to a recent agreement with the U.S. government to re-enter the Chinese market and increasing data center spending [1] Financial Performance Expectations - NVIDIA's revenues for the fiscal second quarter are projected to be $46.03 billion, reflecting a 53.2% year-over-year increase, following a first-quarter revenue of $44.1 billion, which was up 69% year over year [2][7] - Earnings per share (EPS) for the second quarter are expected to be $1.00, a 47.1% increase compared to $0.68 in the same quarter last year [3] Demand Drivers - The new-generation Blackwell Ultra GPUs are in high demand, capable of executing AI tasks 50 times faster than the previous Hopper architecture, which is expected to significantly boost revenues and profits [5] - The resumption of chip sales to China, with an expected $8 billion in sales for the fiscal second quarter, is likely to help recover some of the $2.5 billion in sales lost due to previous restrictions [6][8] Industry Context - Major tech firms are increasing their capital expenditures (capex) for data centers, with Alphabet and Meta raising their 2025 forecasts to $85 billion and $66 billion respectively, while Amazon anticipates $118 billion and Microsoft has reached $88 billion for fiscal 2025 [9] - This growing demand for data center infrastructure supports long-term demand for NVIDIA's GPUs, as companies plan to establish more AI data centers [8] Investment Outlook - Stakeholders are encouraged to hold NVIDIA stock for potential long-term benefits, while new investors may consider waiting for the fiscal second-quarter results to align with or exceed forecasts before purchasing [10]