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Investing.com -- Nvidia (NASDAQ:NVDA) is set to report results for its fiscal second quarter on Wednesday after the market close.
After driving markets higher for much of the year, technology stocks have cooled this month as investor enthusiasm cooled.
Attention now turns to Nvidia’s results, with traders weighing whether its $4 trillion valuation can be supported, and how its outlook may be shaped by a recent revenue-sharing agreement with Washington.
Nvidia shares, a key barometer of the artificial intelligence (AI) boom, are still up about 34% in 2025 and ended Monday’s session 1% higher at $179.81.
Ahead of the print, Wall Street remains broadly upbeat, though analysts point to different risks and catalysts that could shape the company’s outlook.
What are analysts saying ahead of the report
Brokerage firm Baird raised its revenue and earnings per share (EPS) estimates on Nvidia, and lifted its price target to $225 from $195, after tracking an acceleration in GB200 shipments in July.
The firm expects shipment momentum to continue into next year and highlighted that the upcoming GB300 will represent a major performance step-up.
It said Nvidia’s positioning in AI data centers remains “strong and unchallenged” as Spectrum-X networking and enterprise-focused cloud partnerships gain traction.
Piper Sandler also increased its target to $225, citing robust U.S. hyperscaler spending and the return of Chinese sales after a licensing agreement with Washington.
Analysts estimate China could add $6 billion in October-quarter revenue alone, with further ramping through 2026.
“We are expecting another positive quarter from NVDA and see upside to numbers for both the July and October quarters,” Piper Sandler’s Harsh V. Kumar wrote, while noting that demand continues to outpace supply.
Separately, Bank of America (BofA) forecasts a beat-and-raise scenario for Nvidia, projecting $47 billion in fiscal Q2 sales versus $45.8 billion consensus.
The bank sees third-quarter revenue rising to as high as $60 billion if China shipments resume, with gross margins approaching 73–74%.
It said Nvidia’s earnings in fiscal 2027 (FY27) could reach about $7 per share, well above the current consensus of $5.87, if the AI market expands to roughly $341 billion from its present estimate of $309 billion, maintaining a growth rate of around 60% year over year in 2026, the same pace as in 2025.
BofA’s price objective stands at $220.
Morgan Stanley lifted its target slightly to $206, emphasizing that the near-term focus is supply but the story is about durable demand into 2026.
Analysts said hyperscalers now describe Nvidia demand as “remarkable,” “insatiable,” and “massive,” pointing to a surge in inference workloads.
October revenue is expected to benefit from a faster Blackwell ramp, though guidance will likely exclude China until licenses are secured.
Stifel, which raised its target to $212, also expects a beat this quarter and a stronger guide for the next.
The broker flagged investor debates around whether hyperscaler spending is sustainable, the impact of China restrictions, and potential margin pressure during early GB300 ramps.
Even so, it maintained that Nvidia’s “leadership positioning in AI infrastructure remains unchallenged.”
“We expect GB300 specifications (50% higher FP4 performance) to remain best-in-class as inference/reasoning complexity continues to increase. We continue to view shares as attractively valued within the context of continued AI leadership positioning,” Stifel concluded.