Nvidia (NVDA) is scheduled to release its Q2 FY26 earnings results on August 27. Wall Street analysts expect the semiconductor giant to report earnings per share of $1 on revenues of $45.7 billion. Ahead of the results, Bank of America analyst Vivek Arya reaffirmed his Buy rating on Nvidia stock with a $220 price target. The price target implies a 23% upside potential from the current levels.
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Bank of America Sees More Upside for Nvidia
The five-star analyst believes Nvidia is set to beat Q2 expectations, thanks to strong demand for its new Blackwell chips and continued growth in cloud spending. He forecasts $47 billion in Q2 revenue, ahead of both consensus and the company’s own guidance of $45 billion.
Looking ahead to Q3 FY26, Arya expects sales to climb to $54 billion, driven by a continued ramp in Blackwell Ultra shipments. He believes that the figure could go even higher, possibly up to $60 billion, if Nvidia resumes shipments of its China-specific H20 chips.
In terms of margins, Arya sees gross margins rising to 73–74% by Q3 as Nvidia’s rack-scale products gain traction. He also points out that if the company uses some of its previously written-off H20 inventory, margins could get an extra boost of 200–300 basis points.
Long-Term Outlook Remains Strong
For FY26, Arya now expects Nvidia to post $210–215 billion in revenue, helped by continued strength across its AI platforms and sales to China. He raised his EPS estimate to $4.70–$4.80, ahead of the current Street estimate of $4.38.
He also noted that growing investments in AI from big names such as Alphabet Inc. (GOOGL), Meta Platforms Inc. (META), Oracle Corporation (ORCL), and xAI could fuel additional upside for Nvidia.
Watch for Risks Ahead
Despite the strong outlook, Arya pointed to a few key risks. He warned that Nvidia’s H20 chip sales to China could face pressure from regulators, including possible security probes. He also said that rising competition from Chinese chipmakers could make it harder for Nvidia to maintain its lead. Lastly, both Nvidia and Advanced Micro Devices (AMD) will likely need to keep renewing U.S. export licenses to stay ahead in the race.
What Is the Target Price of Nvidia Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 34 Buys, three Holds, and one Sell assigned in the last three months. At $185.79, the Nvidia share price target implies a 4.22% upside potential.
