Goldman Sachs analysts expect strong NVIDIA Q2 earnings, but the stock may fall after the report
Goldman Sachs analysts James Schneider and his team anticipate strong performance from NVIDIA's (Nvidia) Q2 FY27 earnings, to be reported on August 26, with a potential for upward revision of guidance, driven by tight GPU supply and demand. However, given that NVIDIA's stock price has often declined the day after earnings announcements in the past four quarters, even with strong results, Goldman Sachs believes a post-earnings pullback is still possible unless the company releases significant new information. Goldman Sachs reiterates its "Buy" rating on NVIDIA with a price target of $285, representing a 32.73% upside from NVIDIA's closing price of $214.72 on August 21. The analysts note that their earnings per share (EPS) expectations for NVIDIA's second and third quarters are 6% and 12% higher than the Wall Street consensus, respectively. Goldman Sachs is particularly interested in NVIDIA's detailed explanation during the earnings call regarding its customer financing platforms (such as the AI computing infrastructure financing platform established on August 10 in collaboration with several institutions) and their impact on capital allocation.
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Disclaimer: This content reflects the author's personal views only and does not constitute investment advice.
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