Nvidia’s stock is the main event on Wall Street today. Indeed, investors are eagerly awaiting the company’s second-quarter earnings report. Nvidia will release the results after the market closes on Wednesday, August 27. Consequently, many see the report as a pivotal test for the entire AI-driven market rally.
High Expectations for AI Data Center Growth
Wall Street has very high expectations for Nvidia. Specifically, analysts are focused on the company’s data center revenue. The explosive demand for AI chips powers this segment. For instance, large customers like Microsoft, Google, and Amazon continue to spend billions on data centers. This spending directly fuels Nvidia’s growth. In fact, it’s the main reason its stock gained 171% in 2024. Investors will look for signs that this powerful momentum is continuing.
Guidance on China Sales is a Key Focus
Additionally, investors are watching for updates on China. New U.S. export curbs have created uncertainty. Nvidia previously warned these rules could cost it $8 billion in quarterly revenue. However, a recent deal allows Nvidia to resume some sales to China with a 15% fee. Therefore, investors will scan the company’s forward-looking guidance for clarity on this issue. Any details will have a major impact on the stock price.
Beyond AI: The Robotics Opportunity
Furthermore, Nvidia is also expanding into new areas. The company recently announced its new robotics chip, the Jetson AGX Thor. CEO Jensen Huang calls robotics the company’s largest growth opportunity after AI. Although robotics is currently less than 1% of revenue, some analysts see it as a huge future driver. For example, venture capitalist Gene Munster said investors are missing the bigger picture with robotics. He called it the “data center’s encore.”
Wall Street Is Bullish Ahead of the Report
As a result, analysts have been raising their price targets on Nvidia stock. They are broadly bullish heading into the earnings release. For example, Evercore ISI raised its price target to $214. Baird then lifted its target even higher to $225. The consensus price target among 40 analysts is about $200. Ultimately, this shows strong confidence from experts that Nvidia will deliver another strong quarter.