Analysts warn elevated expectations and a 12% two-week gain could trigger profit-taking after Nvidia reports fiscal Q2 results.
Nvidia (NVDA) shares, up 65% over six months, face potential profit-taking after its Aug. 26 earnings report despite strong demand for GPUs. The stock trades just 5% below its $236.54 52-week high, raising concerns of a sell-the-news reaction similar to Cisco’s (CSCO) recent post-earnings decline.
Wall Street expects Nvidia to report $92 billion in revenue, a 96% year-over-year surge, driven by tight GPU supply and hyperscaler capex revisions. However, Goldman Sachs cautions the bar is high after a 12% two-week rally, with investors already pricing in robust guidance.
The company’s fiscal Q2 outlook and CEO Jensen Huang’s commentary will be closely watched for signs of sustained demand. Near-term GPU shortages and strong datapoints from cloud providers support bullish sentiment, but positioning may limit upside.