NVIDIA’s upcoming second quarter earnings report is frequently monitored by investing experts as many expect stocks to ring out after a month’s slump. At the time of pressing, NVDA stocks have only increased by just a few percent, but have risen 29% since the start of the year. Recently, the Trump administration established a 15% revenue sharing requirement for approval of AI chip export licenses. This development has led to AI tech stocks in particular downwards.
Many analysts are optimistic that this week’s NVIDIA’s second quarter revenue report will deliver solid results. However, one analyst suggests that one factor could be all of China, the overall performance of the report. Keybanc Capital Markets analyst John Vinh believes that if China is included in Nvidia’s last quarter and future revenue outlook, Nvidia could add billions to the project. “If NVDA could include China in its guidance, I believe it would contribute to revenues of between $2-3 billion. I wrote in a new memo to my clients.
Vinh expects a strong second quarter results, in response to demand for Nvidia’s Blackwell GPUs. However, analysts warned that the third quarter guidance could be conservative given the uncertainty regarding the US export licence to China. KeyBanc has an overweight rating of NVDA stocks and a price target of $215 from its previous $190 forecast. Analysts cite Nvidia’s central role in the ongoing AI boom and demand for GPU supply as a factor in bullish forecasts.
Additionally, Nvidia’s B30A AI chip development in China represents the company’s latest efforts to maintain market share despite export restrictions. The new Blackwell architecture-based processor promises better performance than the current H20 model while navigating complex regulatory requirements. The Blackwell architecture allows for enhanced performance metrics compared to the older hopper-based H20. Nvidia China’s revenue generated 13% of total revenue last year, with regulatory approval becoming important for the deployment of the B30A.
Morgan Stanley analysts suggest that Nvidia Stock (NVDA) is backed by investors despite being a top performer at Megacap. After a recent surge in the past two years, NVDA stocks are not the biggest investment choice for Megacap stock investors, despite being the most valuable company in the world. “NVDA is currently the lowest large cap technology stock,” wrote Morgan Stanley analyst Eric Woodling in a memo. Therefore, if NVDA stocks surge, the latest revenue report could put a dent in that analysis. Currently, the NVIDIA NVDA is above the simple 200-day moving average near the top of the 52-week range.
