Nvidia (NASDAQ:NVDA) stock heads into the last stretch of earnings season carrying sky-high expectations. Investors will get their answers on August 27, as the AI heavyweight reports against a backdrop of strength across the sector.
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And that strength is no coincidence. The billion-dollar spending spree among hyperscalers is going full steam ahead, while TSMC, the world’s largest chip foundry, delivered robust results in its Q2 2025 earnings report last month. Add to that sovereign efforts to build national AI initiatives, the race toward physical AI, and the recent easing of China’s export restrictions, and the environment looks tailor-made for Nvidia’s continued momentum.
Against this backdrop, Nvidia has set a high bar, guiding for fiscal second-quarter revenues of $45 billion plus or minus 2%, with margins expected to be north of 70%. If achieved, that would mean 50% year-over-year growth – remarkable for any company, let alone one already valued at over $4 trillion.
Still, Morgan Stanley’s Joseph Moore, a 5-star analyst ranked among the top 4% on TipRanks, urges some caution in the near term, noting that while Nvidia is well-positioned for the long haul, expectations for the current quarter may be tempered.
“We expect a strong quarter and outlook, but we’re a little measured on the current quarter – our optimism centers on what lies ahead,” Moore explains.
The analyst points to the Blackwell ramp as the next major growth engine, while also highlighting tier-2 customers – often overlooked – as an underappreciated source of strength heading into the second half of the year.
China adds another wrinkle. While Nvidia may be conservative in forecasting sales there due to the uncertainty around export licenses, those revenues could eventually provide another tailwind. And with R&D spending surpassing $15 billion annually, Nvidia’s grip on the data center market looks secure.
Taken together, Moore argues the demand story is intact and only growing stronger.
“Supply is what matters on the night of the earnings call, but demand is what sets the path into 2026, where all indications are positive,” the analyst sums up, assigning NVDA with a Buy rating and $206 price target, which implies ~17% above current levels. (To watch Moore’s track record, click here)
That outlook aligns closely with the broader Street view. Nvidia boasts 35 Buys, 2 Holds, and just 1 Sell, giving it a Strong Buy consensus. The average 12-month price target of $197.03 implies ~12% upside for the next 12 months. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
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