Nvidia will release its earnings report after the US market closes on Wednesday, and analysts generally expect Nvidia to deliver "better-than-expected results and raise guidance." Analyst surveys predict that Nvidia's EPS for this quarter (F2Q27) will be $2.19, with revenue of approximately $93.58 billion (a 100% year-over-year increase). Guidance for the next quarter (F3Q27) is projected at $106.14 billion (a 13% quarter-over-quarter increase and an 86% year-over-year increase), with some investors even expecting guidance to exceed $110 billion.
Strong shipments of the new generation GB300 server racks are the core driver. In addition, the market is optimistic about the release of its Rubin Ultra chip, potential price increases, enterprise-level AI adoption, and its strong supply chain and cloud business barriers. Gross margin is expected to remain at an extremely high level of 75%.
Optimists believe that Nvidia's valuation is at a multi-year low, and its guaranteed financing mechanism is expected to bring in tens of billions of dollars in additional revenue; pessimists continue to worry about the risks of "revolving financing," and chip production capacity constraints (such as wafer supply) may limit the upward potential of guidance.
The implied stock price volatility following the earnings report is 4.6%. If both Nvidia's performance and the Federal Reserve's policy statements fall short of expectations, it could trigger a 3% to 4% overall pullback in the S&P 500. (The above views are from a JPMorgan Chase report dated August 24.)
