Nvidia will report results for the second quarter of fiscal 2027 after the U.S. market closes on Aug. 26, according to ChainCatcher, citing Cailian Press. Goldman Sachs expects strong results and sees room for guidance to move higher, but said the stock’s recent rally may have already absorbed much of the good news.
The bank noted that Nvidia shares have risen sharply since the start of August, including a gain of more than 12% over the past two weeks. On that view, Goldman said a solid earnings report may not be enough on its own to lift the stock further.
Goldman’s EPS estimates for Nvidia’s second and third quarters are 6% and 12% above Wall Street consensus, respectively. Its $285 price target, however, is still slightly below the market average.
What Goldman says would support a re-rating
Goldman said Nvidia still has room for valuation upside if several conditions are met: improved profitability at hyperscale cloud companies to support capital expenditure, a cautious approach to the company’s customer financing platform to ease concerns about vendor circular financing, and continued large-scale buybacks and dividends.
What investors will watch on the earnings call
Investors are expected to focus on details around the customer financing platform, progress on the Vera Rubin platform, gross margin and raw material costs, CPU demand driven by agentic AI, and the competitive setup across the sector.
Goldman also said strong GPU demand still carries pullback risk. It added that delivering quarterly beats while also raising guidance each time is becoming more difficult, and that it remains unclear whether cloud providers will keep stepping up capital spending.
Financing platform is already under scrutiny
Earlier this month, Nvidia teamed up with Apollo, BlackRock, Blackstone, Goldman Sachs, and KKR to build an AI compute infrastructure financing platform aimed at mobilizing more than $500 billion in third-party capital, the report said.
As market concern over circular financing has increased, Goldman said Nvidia needs to provide more substantial new updates. Otherwise, the stock is more likely to fall after earnings than stage a major rally.