Nvidia (NVDA) is scheduled to release its Q2 FY26 earnings results on August 27. Wall Street analysts expect the chip giant to report earnings per share of $1 on revenues of $45.81 billion. Ahead of the results, Morgan Stanley’s Top analyst Joseph Moore reaffirmed his Buy rating on Nvidia stock and increased the price target to $206 from $200 per share. The new price target implies a 33% upside potential from the current levels. Moore said Nvidia’s outlook for 2026 “looks very strong” due to rising demand, improved supply, and a solid competitive position.
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Nvidia Sees Growth Fueled by Robust Customer Demand
The 5-star analyst expects Nvidia’s revenue for July to reach $46.6 billion, up from his previous estimate of $45.2 billion, and October revenue to hit $52.5 billion versus $51.3 billion earlier. He noted that while supply will affect the current quarter, it is the ongoing demand that will drive growth into 2026. He described customer demand as “remarkable” and “insatiable,” signaling durable revenue growth even as new Blackwell GPUs start shipping.
Hyperscale cloud customers are fueling much of this growth, while smaller customers like CoreWeave (CRWV) are also showing strong spending, particularly in Q4.
Blackwell GPU Supply Picks Up
On the supply side, Moore noted improvements in production and testing for Blackwell GPUs. Rack assembly and testing are moving faster, with more shipments expected in October and even higher numbers in early 2026. He now expects 1.2 million Blackwell units in October and 1.42 million in January.
China and H20 Supply Remain Key Factors
Moore said that Nvidia expects limited revenue from China in the October quarter, even though some H20 chip licenses have already been approved. He added that faster approvals or more clarity on sales could add to growth.
Despite this uncertainty, strong demand from cloud customers and improving supply conditions help support Nvidia’s overall growth outlook.
Nvidia Maintains Strong Market Lead
Moore expects NVIDIA to keep its market share near 85% in 2026. He said the company is outpacing rivals like Advanced Micro Devices (AMD), as its AI investments, rack connectivity, software, and services make it harder for competitors to catch up.
As a result, Moore raised his 2026 revenue and EPS estimates from $264.6 billion/$6.28 to $273.2 billion/$6.51.
What Is the Target Price of Nvidia Stock?
According to TipRanks, NVDA stock has a Strong Buy consensus rating based on 35 Buys, two Holds, and one Sell assigned in the last three months. At $192.62, the Nvidia share price target implies a 5.83% upside potential.
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