Ahead of a ‘Beat and Raise’ Quarter, Should You Buy Nvidia Stock?

Core Insights - Nvidia's stock has surged approximately 50% year-to-date in 2025, driven by strong demand for AI chips, particularly from hyperscale data centers [2] - The company's valuation is significantly higher than its semiconductor peers, trading at about 43x forward earnings and 34x forward sales, indicating high investor optimism [1] - Nvidia's Q2 revenue tripled over two years, with data center business growing 56% year-over-year to $41.1 billion, representing about 88% of total sales [6] Company Overview - Founded in 1993, Nvidia is a leading chipmaker known for its GPUs and AI accelerators, playing a crucial role in data centers and gaming industries [3] - Nvidia recently achieved a market capitalization milestone of over $5 trillion, marking a first for any chipmaker [3] Recent Developments - Nvidia announced major partnerships, including projects with SK Group and Samsung, utilizing approximately 50,000 GPUs for AI chip design and fabrication [10] - Collaboration with Oracle aims to create the largest AI supercomputer in the U.S. Department of Energy, utilizing 100,000 Nvidia GPUs [11] Financial Performance and Expectations - Analysts expect Nvidia to report a "beat-and-raise" quarter for Q3, with guidance of approximately $54.0 billion in revenue, a 16% increase from Q2 [4][7] - Morgan Stanley raised its FY2026 revenue estimate to $273.2 billion, reflecting updated growth assumptions [7] Analyst Sentiment - Wall Street remains bullish on Nvidia, with Goldman Sachs reiterating a "Buy" rating and raising its 12-month target to $240 [13] - The consensus among 47 analysts is a "Strong Buy" with a mean price target of $230.14, suggesting potential upside from current levels [15]