Investors eagerly await Nvidia’s NVDA Second-quarter results will be released on Wednesday, August 28. This will be the chip giant’s first quarterly report since its 10-for-1 stock split in June.

As a leading supplier of semiconductor chips for artificial intelligence, Nvidia’s stock rose only +4% after the split, but has increased by over +150% since the beginning of the year. Let’s see if NVDA can return to its excellent price performance with the earnings forecast.

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Nvidia’s expectations for the second quarter

According to Zacks estimates, Nvidia’s revenues are expected to have increased 109% to $28.24 billion in the second quarter, compared to $13.51 billion in the same quarter last year. The bottom line is also expected to show excellent growth, with earnings per share expected to be $0.63 in the second quarter, compared to $0.27 per share last year (EPS of $2.70/10).

Notably, Nvidia has beaten earnings expectations for six consecutive quarters and posted an average EPS surprise of 18.43% over the last four quarterly reports.

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Blackwell Update & Outlook

Wall Street will be waiting for further updates on Nvidia’s Blackwell chips, whose launch was delayed by three months due to design flaws and is now expected in the fourth quarter. The Blackwell GPUs are expected to be the most powerful AI chips on the market, giving Nvidia a head start over AMD’s AMD MI300 chips as it builds on its current H200 series.

This could be crucial to confirm Nvidia’s tantalizing prospects, as total revenue is expected to increase 94% to $118.1 billion in the current fiscal year 2025, compared to $60.92 billion in fiscal year 2024. In addition, revenue is expected to increase another 31% to $154.61 billion in fiscal year 2026.

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Even better, annual earnings are expected to increase 107% in fiscal 2025 and rise another 26% to $3.40 per share in fiscal 2026.

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Monitoring Nvidia’s valuation

Nvidia stock trades at around $126, giving it a 48x earnings multiple, which represents a premium to the S&P 500’s 23.8x but is close to AMD’s 46.1x. Moreover, NVDA is trading well below its five-year high of 122.1x earnings and at a discount to the median of 55.6x over that period.

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Conclusion

Ahead of the Q2 report, Nvidia stock is earning a Zacks Rank #3 (Hold). Although Nvidia’s valuation has become more reasonable, meeting or beating Q2 expectations can be key to further share price gains, as can reconfirming the Q4 launch of Blackwell chips, which will be key to continuing robust growth.

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