Nvidia(US:NVDA) Xin Lang Cai Jing·2025-08-27 08:47Core Viewpoint - Nvidia is expected to report strong Q2 2026 earnings, with significant revenue growth driven by increased demand for AI and data center solutions [1][5]. Group 1: Financial Performance Expectations - Nvidia's revenue for the latest quarter is projected to be $45.97 billion, a year-over-year increase of 53.03% [5]. - The expected earnings per share (EPS) is $0.935, reflecting a year-over-year increase of 39.51% [5]. - Analysts have set an average target price of $198 for Nvidia's stock [5]. Group 2: Market Trends and Demand - Major tech companies, including Microsoft, Google, Amazon, and Meta, have reported high growth in capital expenditures, indicating strong demand for Nvidia's products [7]. - OpenAI plans to stockpile over 1 million GPUs by the end of 2025 to support future AI models, highlighting Nvidia's critical role in the AI ecosystem [9]. - The global AI server shipment is expected to grow by 24.3% year-over-year in 2025, with a compound annual growth rate of 27% from 2022 to 2027 [13]. Group 3: Strategic Developments - Nvidia's strong CUDA ecosystem locks users and developers into its platform, providing a stable cash flow similar to Netflix's model [15]. - The company is developing a new B30A chip to replace the criticized H20 chip, which is crucial for maintaining its market share in China, accounting for 13% of its revenue [15]. - Wall Street institutions have significantly increased their holdings in Nvidia, with major firms like JPMorgan and Goldman Sachs boosting their positions ahead of the earnings report [17].