Nvidia Earnings: Chip Spending, China in Focus With Stock Near Highs

Analysts at Stifel said they expected Nvidia to beat earnings estimates for the quarter and post “healthy” guidance for the third quarter, thanks to strong demand for its chips.

“The longer-term bull-case emphasizes that AI-driven demand will remain robust and NVDA should maintain their market leadership in AI-accelerators into circa-2030 at the very least,” they wrote.

They continued: “As it stands today, we lean more toward the bull case, while underscoring that supply-side risk (including tariffs and trade regulations) is the key overhang to the name.”

Analysts reiterated their “Buy” rating on the stock and raised their price target to $212 from the prior $202, implying 18% upside.

Evercore analysts said they expected AI capex to soar 72% in 2025, adding that cloud demand at companies like Amazon and Azure suggested that AI “hit a tipping point at enterprises.”

Industry checks also suggest there’s strong demand for Nvidia’s Blackwell product line, and that the company’s software remains the “solution of choice” for training large language models.

“NVDA remains our top pick, near-term due to improving visibility, longer-term, as we believe it could ultimately capture up to 16% weighting of the S&P 500 Index,” they added. At the time analysts wrote the note, Nvidia made up around 8% of the benchmark index.

Evercore reiterated its “Outperform” rating on the stock and lifted its price target to $214 a share from $190 a share, implying 19% upside from current levels.

Second quarter

Third quarter

Revenue estimate: $53.46 billionAdjusted gross margin estimate: 73.4%Adjusted operating expenses estimate: $4.26 billionCapital expenditure estimate: $1.23 billion

Full year 2026

Revenue estimate: $203.68 billionCapital expenditure estimate: $4.72 billion

Source: Bloomberg