Nvidia Expected to Exceed Guidance
Nvidia to beat Q2 guidance and issue strong Q3 guidance
BofA Global Research expects $NVDA to exceed second-quarter guidance and issue strong third-quarter guidance as its Vera Rubin chip upgrade cycle begins, ahead of Nvidia's August 26 earnings report.
The Details: • Revenue forecast: BofA projects second-quarter revenue of $94B—$95B, above Nvidia's $91B guidance, and third-quarter sales of $107B—$108B, above roughly $104B consensus. • Valuation view: BofA maintained a Buy rating and $350 price target, calling Nvidia its top sector pick at 16 times projected 2027 earnings. • Margin outlook: BofA estimates memory-cost headwinds on Vera Rubin systems at about 60 basis points, with gross margins stabilizing near 73%—74%. • Capital commitments: Nvidia has committed roughly $70B in direct equity to partners, including $30B to OpenAI and up to $10B to Anthropic.