Nvidia Earnings Preview Summary

Date: August 26, 2026

Author: Kathleen Brooks, Research Director UK

Overview

Nvidia, a leading player in the AI sector, is set to report its earnings for the last quarter after US markets close. Analysts anticipate a strong performance, with projected revenues exceeding $92 billion and earnings per share at $2.09. This follows a previous guidance of $91 billion for Q2 revenue, which was already a significant increase of 85% year-over-year.

Business Model Transformation

Nvidia has undergone a notable transformation in its business model, evolving from a traditional chip manufacturer to a key financier in the AI industry. This shift is underscored by a recent partnership with OpenAI, where Nvidia committed to a $105 billion financing package for a major data center project in Ohio, alongside a $1.5 billion investment in SB Energy for energy supply.

This partnership builds on a larger $100 billion equity and infrastructure agreement aimed at developing future data centers, highlighting Nvidia's dual role as both a leading GPU producer and a significant investor in AI infrastructure.

Financial Metrics and Expectations

As Nvidia prepares to release its Q2 results, analysts will closely monitor not just revenue figures but also net income, which will reflect unrealized gains from its AI investments. The Non-Marketable Securities section, which includes Nvidia's stakes in private companies, is expected to show substantial growth from $43 billion last quarter, up from just $3 billion a year ago.

Risk Assessment

With Nvidia's market capitalization at $5.2 trillion, its performance is crucial for global stock markets. Investors are urged to evaluate the risks associated with Nvidia's new financing strategies, including potential defaults and the return on investment from its AI ventures. The future demand for AI and the depreciation of data centers are becoming increasingly important factors in assessing Nvidia's long-term profitability.

Valuation Outlook

Nvidia's current forward P/E ratio stands at 23, slightly above the S&P 500 average of 20. However, investor sentiment may shift based on perceptions of whether Nvidia's investments could jeopardize future profits. If successful, Nvidia could potentially become the first company valued at $20 trillion.

Technical Analysis

From a technical standpoint, Nvidia's stock price recently increased by 2%, bouncing off a support level at $207. A breakout above $216 could indicate bullish momentum, while a drop below $195 may suggest further declines towards July lows.

Conclusion

As Nvidia approaches its earnings report, the focus will be on its ability to maintain robust demand for its products while navigating the complexities of its new role as a financier in the AI sector. The outcomes of these investments will be critical in shaping Nvidia's future valuation and market position.