Nvidia earnings preview: $91 billion revenue forecast and low valuation point to upside
Analysts expect the chipmaker’s second-quarter fiscal 2027 results to show accelerating growth, with data-centre demand and Blackwell architecture adoption driving a 95 per cent year-over-year revenue surge.
Nvidia is scheduled to release its second-quarter fiscal 2027 financial results on Wednesday, 26 August, with analysts anticipating a significant acceleration in both revenue and earnings. The company is expected to generate approximately US$91 billion in revenue, representing a 95 per cent year-over-year increase, while earnings per share are forecast to reach US$2.09, an estimated 111 per cent jump from the same period last year.
The data-centre segment is projected to lead this performance, supported by strong adoption of the company’s Blackwell architecture. In the preceding quarter, Nvidia reported revenue of US$81.6 billion, an 85 per cent year-over-year increase, with the data-centre division contributing US$75.2 billion. Management has cited the Blackwell platform as a key growth catalyst, noting that demand for both Blackwell and Blackwell Ultra systems remains solid, while Hopper-based products continue to maintain healthy uptake.
Beyond its core graphics processing units, Nvidia is expanding its footprint in the CPU market as artificial intelligence workloads shift towards inference and autonomous agents. The company estimates the addressable CPU market at approximately US$200 billion and expects its CPU products to generate around US$20 billion in revenue this year. Additionally, the networking business is becoming a significant contributor as AI data centres require more sophisticated interconnect infrastructure.
Despite the rapid growth, Nvidia’s valuation remains attractive relative to its peers. The stock currently trades at 25.1 times forward earnings, a multiple significantly lower than Advanced Micro Devices, which trades at 72.9 times, and Intel, at 91.6 times. Analysts project Nvidia’s earnings to increase by roughly 93 per cent in fiscal 2027, followed by a further 43 per cent increase in fiscal 2028, suggesting the current multiple is modest given the company’s growth profile.
The broader AI investment cycle continues to provide a tailwind, with hyperscalers increasing capital expenditures for advanced computing infrastructure. Management has expressed confidence in generating approximately US$1 trillion in combined Blackwell and Rubin revenue from 2025 through calendar 2027. This long-term outlook, combined with the company’s dominant position in AI infrastructure, supports the view that the growth trajectory is sustainable.
According to Barchart, 44 out of 48 analysts covering Nvidia maintain a "Strong Buy" rating ahead of the earnings release. The average price target of US$306.22 implies potential upside of 42 per cent from current levels, positioning the stock for further gains if the company meets its robust forecasts.
