TLDRs;
- NVIDIA stock slipped slightly as investors positioned ahead of the company’s closely watched August earnings report.
- Wall Street expects $91.9 billion in revenue, only modestly above NVIDIA’s official guidance midpoint.
- Data Center remains the company’s dominant business, accounting for more than 90% of recent quarterly revenue.
- Investors could focus heavily on margins, Rubin shipments and forward guidance beyond the headline earnings numbers.
NVIDIA (NVDA) stock slipped slightly in Friday’s session as investors assessed the company’s upcoming earnings report and whether its extraordinary artificial intelligence growth can continue to exceed already elevated expectations. Shares finished at around $225.62, leaving the stock roughly 4.6% below its recent record high of $236.54.
Despite the modest decline, NVIDIA remains one of the strongest-performing major technology stocks this month. The shares have gained more than 12% in August, reflecting continued optimism surrounding AI infrastructure spending and demand for the company’s accelerators.
However, the upcoming fiscal second-quarter results could present a tougher test. Wall Street currently expects NVIDIA to report approximately $91.9 billion in quarterly revenue, compared with management’s guidance midpoint of $91 billion. That represents only a $900 million difference, or roughly 1%, meaning a result merely in line with expectations may not be enough to generate another major move higher.
AI Revenue Remains Dominant
NVIDIA’s financial performance continues to depend overwhelmingly on its Data Center operation, which has become the primary engine behind the company’s explosive growth.
During fiscal first-quarter 2027, Data Center revenue reached $75.2 billion, representing approximately 92.1% of NVIDIA’s total $81.6 billion revenue. The segment also expanded 92% year over year, demonstrating the extraordinary demand for infrastructure supporting generative and agentic AI applications.
Edge Computing contributed another $6.4 billion, representing 7.8% of total revenue and increasing 29% from the previous year. The category includes areas such as automotive and robotics, although NVIDIA does not separately disclose revenue generated specifically from robotics.
That distinction is important because NVIDIA has increasingly highlighted physical AI and robotics as potential long-term growth opportunities. The company recently announced plans with LG to develop a next-generation bipedal humanoid expected to arrive in early 2027.
The project is expected to incorporate NVIDIA’s Isaac GR00T robotics technology and Jetson Thor platform. NVIDIA and LG are also working on wheeled robotics and vehicle-computing applications.
Still, investors appear more focused on the company’s core AI infrastructure business than its emerging robotics opportunity.
Earnings Expectations Set High Bar
NVIDIA is set to report earnings on August 26, with analysts expecting $91.9 billion in revenue and adjusted EPS of $2.08.
The revenue estimate implies roughly 97% year-over-year growth but sits only 1% above NVIDIA’s $91 billion guidance midpoint.
Investors will therefore focus on the company’s forward outlook, Rubin demand and margins. NVIDIA has guided for a 75% non-GAAP gross margin, making profitability another key test.
Valuation Raises Investor Stakes
NVIDIA’s enormous valuation adds another layer of sensitivity to the upcoming report. At Friday’s closing price, the company’s market capitalization was approximately $5.5 trillion, leaving investors with little tolerance for signs of slowing growth.
Wall Street nevertheless remains broadly bullish. The cited average price target of $302.83 implies approximately 34% upside from the latest closing level. Bank of America has maintained a $350 target, while KeyBanc has placed its target at $330. Bernstein and Citi have targets of $275 and $270, respectively.
Those bullish projections reflect confidence that AI infrastructure investment can continue supporting NVIDIA’s growth. However, several risks could disrupt that outlook, including slower customer spending, tighter export restrictions and potential delays surrounding new chip platforms.
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