AI giant Nvidia (NVDA) will report Q2 FY26 earnings on August 27, and Stifel’s Top analyst Ruben Roy expects the company to deliver another strong quarter. He reaffirmed his Buy rating and raised his price target to $212 from $202, implying a 19% upside from current levels. Roy pointed to strong demand for Nvidia’s Blackwell chips and growing momentum in its next-generation products.
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Analyst Expects a Q2 Beat and Solid Q3 Guidance
Roy noted that Wall Street expects Q2 revenue of $45.8 billion, slightly above Nvidia’s own outlook of $45 billion. He believes Nvidia could deliver a modest beat, helped by higher spending from cloud providers and the resumption of H20 chip shipments to China.
He also highlighted that demand remains robust and supply issues appear limited, which should support healthy sequential growth into Q3.
Demand Still Strong Despite Concerns
The analyst admitted some investors are worried about whether Nvidia’s fast growth can be sustained, especially with concerns of an “AI bubble” and a slower-than-expected GPT-5 launch.
Even so, Roy stressed that hyperscaler capital spending remains strong and Nvidia’s lead in AI hardware is intact. He also pointed out that the new GB300 chip offers a 50% performance boost over the GB200, which should fuel strong orders through the rest of the year.
Stifel Weighs Margin Risks and China Growth Potential
On the margin front, Roy expects some pressure as Nvidia ramps up GB300 production, but he believes overall profitability will remain strong, with gross margins staying in the mid-70% range by year-end.
He also noted that while China is promoting local chip alternatives, Nvidia’s products are still vital for the market. Capturing even a small share of China’s $50 billion AI accelerator market could be a meaningful driver, he added.
Looking ahead, Roy believes Nvidia is in a strong position to benefit from AI demand through at least 2030, backed by ongoing spending from cloud providers, governments, and enterprises.
What Is the Target Price of Nvidia Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, three Holds, and one Sell assigned in the last three months. At $198.57, the Nvidia share price target implies an 11.56% upside potential.
