After the green light to charge chips to China, it appears that there is no look on the back of the NVIDIA giant chips (NVDA). The AI (AI) demand remains a huge wind of the company, and NVIDIA is preparing to launch GB300 shipments from the next generation in the last half of this year.
In exchange for this background, does investors should be enthusiastic about the results of NVIDIA in the next second quarter, which is scheduled to be released on August 27?
Little should be said about the abilities of the tyrant in making this semiconductor. NVIDIA is the global leading company in the manufacture of graphics processing units (GPU), which is the cornerstone of the AI Advanced AI. NVIDIA powerful devices convert companies by speeding up the burdens of artificial intelligence and data analyzes. With a huge market formation of $ 4.2 trillion, this customer of artificial intelligence carries the crown of the most valuable company in the world.
NVIDIA was in the midst of the artificial intelligence race between the United States and China. While there are some restrictions imposed, President Donald Trump has banned the export of H20 chips to China. Recently, NVIDIA won the approval to ship the advanced H20 chips to the country. These chips are expected to be used in artificial intelligence in China, and are explicitly designed to comply with restrictions, allowing them to market them in the Chinese market.
NVIDIA also means taking advantage of alleviating some non -transmitted restrictions. However, NVIDIA’s electronic space organizers have called for concerns about the security of these chips, and they asked for an explanation of the “back safety risks” in H20 chips. On the other hand, these chips rise in China, which causes the company to expand and not only rely on its current stock. As a result, NVIDIA has been said to have requested 300,000 H20 chip from the Taiwan Semiductor (TSM).
NVDA shares remain in demand between investors. Over the past 52 weeks, the stock gained 59 %. The shares of the manufacturer of chips reached the highest level in 52 weeks at $ 183.30 on July 31, which is only about 5 % of this brand. NVDA shares also increase 29 % so far this year.
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Specifically, the NVIDIA evaluation extends compared to its peers, where its price sits at 44 times forward.
On May 28, NVIDIA reported solid results in the first quarter of the fiscal year 2026 (the quarter that ended on April 27). For this period, revenue increased by 69 % on an annual basis (YO) to $ 44.1 billion. This was above 43.28 billion dollars expected by Wall Street analysts. Data Center revenues amounted to 39.1 billion dollars, an increase of 73 % over the overall value.
EPS of NVIDIA NON-GAP increased by 33 % year on year to $ 0.81, exceeding the estimation of the analyst of $ 0.75.
At the heart of this growth, the demand for NVIDIA’s infrastructure was strong. On the other hand, the company recorded a $ 4.5 billion fees linked to excessive H20 chips and purchasing obligations with a decrease in demand due to export restrictions.
Wall Street analysts are optimistic about the future profits of Nafidia. The company is expected to rise by the company by 45 % year on an annual basis to $ 0.94 for the Q2 Fiscal 2026, which is scheduled to be reported on August 27 after the market closed. For the current fiscal year, EPS is expected to increase by 37 % annually to $ 4.02, followed by a growth of 33 % to $ 5.34 in the coming fiscal year.
Analysts are now exceptionally followed on NVDA shares, especially because they are the profitable candidate in the very profitable intelligence space. Recently, Morgan Stanley Joseph Moore’s analyst, targeting the arrow, raised the $ 200 while maintaining a “weight gain” classification. Moore sees great potential for the planned expansion in NVIDIA Blackweell later this year, which can pay the next stage of the company’s growth.
Mizuho analysts also raised the target price on NVDA from $ 185 to $ 192, while maintaining their “superior” classification. Mizuho raised the target after the company announced that it can restart GPU shipments to China, noting that Chinese customers – such as Betedance and Tence (Tcehy) – are already applying for licenses for H20 chips.
Nidham analysts were martyred by the same reason to raise their target price on NVIDIA from $ 160 to $ 200, while maintaining the “purchase” classification. Nidham stated that raising restrictions gives clarity about the future of NVIDIA’s business in China.
NVIDIA was in the spotlight on Wall Street for some time now, as analysts gave “a strong purchase” rating in general. Of the 45 analysts, analysts classify stocks, with a majority of 39 analysts suggests “strong purchase”, two “moderate” analysts suggest, and three playing safely with a “comment” classification, and one analyst has given only a “strong sale” classification. The purpose of the consensus price of $ 183.88 represents 6 % of the current levels. However, the goal of the high price in the street of $ 250 indicates 44 % of the upward trend.
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NVIDIA can open a new growth semester dependent on the planned expansion of Blackweell. At the same time, the resumption of its prosperous work in China should preach well to the company. In this case, the expectation of strong gains from the Q2 results will not be an extension.
On the date of publication, Anushka Dutta did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
