- Nvidia stock has risen 15% in 2026, outperforming the market's 12% but underperforming compared to previous years.
- Nvidia announced partnerships with BlackRock, Blackstone, KKR, Apollo, Brookfield, and Goldman Sachs to securitize GPUs.
- The company is building an 8-gigawatt data center in Ohio with an investment of up to $150 billion.
- Nvidia reports Q2 earnings on Wednesday, Aug. 26.
- Analysts expect adjusted EPS of $2.09 on revenue of $92 billion, marking a 96% year-over-year jump.
- Data Center revenue is anticipated to top $85.4 billion, reflecting a 107% increase.
- Nvidia's stock trades at 24 times forward earnings, close to the S&P 500's 21.4 times.
- Nvidia's stock is considered cheap compared to its peers, with a low valuation heading into earnings.
- The company continues to derive most of its revenue from hyperscalers like Amazon, Google, and Microsoft.
- Despite strong results, the market has grown skeptical about Nvidia's growth thesis in 2026.
Nvidia's Q2 earnings report, set for August 26, is poised to be a pivotal moment for the AI sector. Analysts forecast a remarkable 96% year-over-year revenue increase to $92 billion, with adjusted earnings per share (EPS) expected at $2.09.4
The anticipated 107% growth in Data Center revenue, projected to exceed $85.4 billion, underscores Nvidia's dominance in AI computing. However, concerns linger as major clients like Amazon and Google develop their own chips, potentially impacting Nvidia's future revenue streams.7
Despite a 15% stock increase in 2026, Nvidia's performance has not matched its previous years, leading to skepticism among investors. The stock's current valuation at 24 times forward earnings is only slightly above the S&P 500's 21.4, suggesting it may be a last opportunity for investors to buy in before a potential rally.8
If Nvidia exceeds expectations, with analysts predicting 97% year-over-year growth, the stock could see significant upward movement. As one analyst noted, "Given its continued stellar growth rate and reasonable valuation, I can think of few stocks that are better buys." The market's reaction to Nvidia's earnings will be crucial in determining its trajectory for the remainder of the year.
“Analysts expect Nvidia to report adjusted EPS of $2.09 on revenue of $92 billion, a 96% year-over-year jump, with Data Center revenue up 107% to $85.4 billion. The company is also working with BlackRock and others to securitize GPUs and building an 8-gigawatt Ohio data center.”
Yahoo Finance
