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Investing.com - BofA Securities has reiterated its Buy rating and $220.00 price target on Nvidia (NASDAQ:NVDA) ahead of the company’s second-quarter earnings report scheduled for August 27. According to InvestingPro data, NVDA currently trades near its 52-week high of $183.30, with the stock showing remarkable momentum through a 62% return over the past year.
The firm expects Nvidia to report second-quarter sales of $47 billion, exceeding both the consensus estimate of $45.8 billion and the company’s guidance of $45 billion, driven by the continued ramp of Blackwell architecture and robust cloud spending. This growth trajectory aligns with the company’s impressive 86% year-over-year revenue growth and excellent financial health score revealed by InvestingPro’s comprehensive analysis.
BofA anticipates Nvidia will raise its third-quarter guidance to approximately $54 billion, representing mid-teens sequential growth compared to the consensus estimate of $52.5 billion, with potential to reach $57-60 billion if H20 chip shipments to China officially resume.
Gross margins are expected to approach 73-74% by the third quarter as rack-scale architecture gains scale, with a potential additional 200-300 basis points boost if H20 utilizes previously written-off inventory valued at $5.5 billion in the first quarter.
For fiscal year 2026, BofA projects Nvidia’s sales outlook could rise toward $210-215 billion (including China) with earnings per share up to $4.70-4.80, compared to the consensus estimate of $4.38, though the firm notes H20 sales may face security probes by Chinese regulators and increasing local competition.
In other recent news, Nvidia Corporation has been summoned by Chinese regulators to address security concerns related to its H20 artificial intelligence chips. The meeting, led by China’s Cyberspace Administration, was prompted by claims from U.S. lawmakers about potential tracking capabilities in advanced chips exported internationally. Additionally, Nvidia is set to announce its second-quarter fiscal year 2026 financial results on August 27, 2025. This announcement will be accompanied by a conference call to discuss the company’s performance for the period ending July 27, 2025.
Morgan Stanley (NYSE:MS) has adjusted its price target for Nvidia, increasing it from $170 to $200 while maintaining an Overweight rating. The investment bank highlighted strong demand for Nvidia’s Blackwell architecture, noting that growth in token usage is surpassing the company’s shipping capabilities. In other developments, OpenAI has announced plans for Stargate Norway, a significant AI data center in Europe, which will utilize 100,000 Nvidia GPUs by the end of 2026. This project is part of OpenAI’s initiative to expand its AI infrastructure, leveraging Norway’s renewable energy resources.
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