Nvidia is poised for a critical earnings announcement, and Wall Street is already responding. Goldman Sachs has increased its price target for Nvidia (NVDA) to $200, up from $185, while reaffirming a “buy” rating. The firm expects the chipmaker to beat expectations in its second-quarter results and raise its guidance—driven by progress in China and improving profit margins.
Q2 earnings expected to beat estimates
Wall Street expects Nvidia to report $4.57 billion in revenue and $1 in earnings per share. Goldman Sachs analyst James Schneider forecasts that Nvidia will exceed those figures. He points to robust AI chip demand and solid execution as reasons for the expected outperformance.
In advance of the earnings call, Schneider urges investors to watch three key areas:
- Blackwell and Rubin chips: Nvidia plans to launch Blackwell later this year and roll out Rubin in 2026. Investors will look for production updates and shipment timelines.
- H20 chip compliance in China: The company designed the H20 chip specifically to meet U.S. export restrictions. Analysts want clarity on how this product will impact revenue and market share in China.
- Gross margins: Nvidia aims to absorb inventory while sustaining high profit margins. If it succeeds, analysts expect stronger upward momentum for the stock.
Nvidia shares gain 34% in 2025, earnings could justify valuation
Nvidia stock has surged 34% year-to-date, outperforming most of the tech sector. However, maintaining that growth will require earnings to match investor optimism. According to Goldman, the company has enough momentum to deliver.
“Nvidia continues to execute on product delivery, and the China strategy shows real progress,” Schneider said. “If margins hold, the valuation can expand further.”
Guidance will shape investor sentiment
Nvidia’s guidance during the earnings call will play a major role in shaping near-term price movement. Investors are closely monitoring comments about enterprise AI demand, chip deployment schedules, and sales from China.
Positive signals in those areas could push the stock well beyond its current range. On the other hand, any signs of weakness could trigger a short-term pullback.