NEW YORK, August 24, 2026, 09:24 EDT
- NVIDIA Corporation NASDAQ:NVDA is scheduled to announce fiscal second-quarter earnings after markets close on August 26.
- The company’s projected revenue midpoint of $91 billion indicates sequential growth of 11.5% and a year-over-year increase of 94.7%.
- With a valuation of $5.20 trillion, a 1% change in the stock amounts to $52 billion—surpassing total revenue from the entire second quarter last year.
Nvidia began the week of earnings with a market value where minimal percentage changes create significant shifts in dollar terms. Shares traded at $215.35, adding 0.29%, at 09:05 EDT ahead of the U.S. market opening on Monday. The company is scheduled to report results Wednesday around 16:20 EDT.
The measure of scale is the test for investors. With Nvidia’s market capitalization at $5.20 trillion, a 1% shift in its value equals roughly $52 billion gained or lost. That figure surpasses the $46.74 billion in revenue the company posted for the same quarter last year.
| Valuation scale | Amount | Comparison |
|---|---|---|
| Market cap | $5.20tn | Based on August 24 close |
| Impact of 1% share move | $52.00bn | Represents 1% of company value |
| Q2 FY2026 sales | $46.74bn | Same quarter previous year |
| Change from 1% move vs last year’s revenue | $5.26bn | 11.2% higher than sales a year ago |
Nvidia set the bar high for Wednesday, projecting revenue at $91.0 billion, with a possible 2% fluctuation. According to Google Finance, consensus estimates stand at $92.18 billion, which is around $1.18 billion higher than Nvidia’s midpoint forecast.
| Revenue benchmark | Amount | Growth or gap |
|---|---|---|
| Q2 FY2027 company midpoint | $91.00bn | Up 11.5% from Q1 |
| Q2 FY2027 analyst estimate | $92.18bn | 1.3% higher than midpoint guidance |
| Q1 FY2027 actual | $81.62bn | Up 85% from a year ago |
| Q2 FY2026 actual | $46.74bn | Guidance points to 94.7% increase |
The Data Center division accounted for $75.2 billion, making up 92.1% of sales in the first quarter. Revenue rose 21% from the previous period. Nvidia’s revised reporting structure, separating Hyperscale and ACIE—which includes AI cloud, industrial and enterprise segments—faces its first significant market assessment on Wednesday.
Profit margins are nearly as significant as revenue. Nvidia forecasts a non-GAAP gross margin of 75.0%, with a possible fluctuation of 50 basis points either way. A basis point represents one one-hundredth of a percentage point.
| Guidance scenario | Revenue | Gross margin | Implied gross profit |
|---|---|---|---|
| Lower range | $89.18bn | 74.5% | $66.44bn |
| Midpoint | $91.00bn | 75.0% | $68.25bn |
| Upper range | $92.82bn | 75.5% | $70.08bn |
| Midpoint, 50-basis-point margin shift | $91.00bn | 0.5 point | $455mn |
This sensitivity to margins is driving increased attention to pricing, alongside volume. Reuters reported that certain buyers have been informed of potential price hikes of over 15% for Nvidia-based AI servers, due to climbing memory expenses. Charging more for systems can help maintain margins, but this strategy also increases customers’ upfront capital requirements.
In May, Chief Executive Jensen Huang stated the AI-factory expansion was “accelerating at extraordinary speed.” Data Center revenue for the first quarter almost doubled compared to the same period last year. The outlook for the second quarter did not include any Data Center compute revenue from China. Nvidia statement
Wall Street sentiment is strongly upbeat. Out of 62 analysts at S&P Global, 59 assign Buy or Strong Buy ratings. Their mean price target stands at $304.73, reflecting a 41.9% premium to Friday’s closing price.
| Analyst recommendation | Count | Share of 62 |
|---|---|---|
| Strong Buy | 49 | 79.0% |
| Buy | 10 | 16.1% |
| Hold | 2 | 3.2% |
| Sell | 0 | 0.0% |
| Strong Sell | 1 | 1.6% |
| Average price target | $304.73 | +41.9% |
The consensus brings its own challenge. “Chips have become a frothy space,” Empower strategist Marta Norton told Reuters. She expressed doubt about how much positive news was still not reflected in prices. Reuters
Nvidia shares were valued at 32.9 times their trailing earnings and 21.4 times forward earnings. On Friday, the stock finished 9.2% under its 52-week peak. Even with robust results, the outlook could fall short if guidance does not surpass high market expectations.
Risks: Earnings expectations could be pressured by weaker hyperscaler investment, regulatory limits in China, rising memory costs, or a margin shortfall. At the current market capitalization, a 1% drop would cut approximately $52 billion from the company’s value.
Nvidia is set to release commentary from its CFO around 16:20 EDT on Wednesday. The company’s conference call is scheduled for 17:00 EDT. Key elements for the market will be revenue guidance, the updated customer mix, and gross margin, as investors gauge whether the valuation can withstand another quarter with elevated expectations.
Related articles: NASDAQ:NVDA
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