NVIDIA Corporation provides graphics and compute and networking solutions in the United States, Taiwan, China, Hong Kong, and internationally. The Graphics segment offers GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU or vGPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems; and Omniverse software for building and operating metaverse and 3D internet applications. The Compute & Networking segment comprises Data Center computing platforms and end-to-end networking platforms, including Quantum for InfiniBand and Spectrum for Ethernet; NVIDIA DRIVE automated-driving platform and automotive development agreements; Jetson robotics and other embedded platforms; NVIDIA AI Enterprise and other software; and DGX Cloud software and services. The company's products are used in gaming, professional visualization, data center, and automotive markets. It sells its products to original equipment manufacturers, original device manufacturers, system integrators and distributors, independent software vendors, cloud service providers, consumer internet companies, add-in board manufacturers, distributors, automotive manufacturers and tier-1 automotive suppliers, and other ecosystem participants. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California.

NVIDIA Corporation

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Upstart Holdings Inc (Symbol: UPST), where a total volume of 197,809 contracts has been traded thus far today, a contract volume which is representative of approximately 19.8 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 261.4% of UPST's average daily trading volume over the past month, of 7.6 million shares. Particularly high volume was seen for the $72 strike call option expiring August 29, 2025, with 27,342 contracts trading so far today, representing approximately 2.7 million underlying shares of UPST. Below is a chart showing UPST's trailing twelve month trading history, with the $72 strike highlighted in orange:
Chewy Inc (Symbol: CHWY) saw options trading volume of 134,939 contracts, representing approximately 13.5 million underlying shares or approximately 212.1% of CHWY's average daily trading volume over the past month, of 6.4 million shares. Particularly high volume was seen for the $44 strike call option expiring September 12, 2025, with 18,030 contracts trading so far today, representing approximately 1.8 million underlying shares of CHWY. Below is a chart showing CHWY's trailing twelve month trading history, with the $44 strike highlighted in orange:
And NVIDIA Corp (Symbol: NVDA) saw options trading volume of 3.1 million contracts, representing approximately 306.6 million underlying shares or approximately 194.3% of NVDA's average daily trading volume over the past month, of 157.8 million shares. Especially high volume was seen for the $177.50 strike call option expiring August 22, 2025, with 308,292 contracts trading so far today, representing approximately 30.8 million underlying shares of NVDA. Below is a chart showing NVDA's trailing twelve month trading history, with the $177.50 strike highlighted in orange:
For the various different available expirations for UPST options, CHWY options, or NVDA options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: UPST, CHWY, NVDA

NVIDIA Corporation NVDA is all set to report its much-awaited fiscal 2026 second-quarter (ended July 30) earnings after the closing bell on Aug. 27. This announcement could be pivotal for NVIDIA, particularly following its recent agreement with the U.S. government to re-enter the Chinese market and amid record-high data center spending. Therefore, it is important to explore the strategic actions investors can consider before the upcoming earnings report.
NVIDIA Gears Up for Explosive Q2 Results
It’s been nearly three months since NVIDIA reported fiscal first-quarter results. Its revenues of $44.1 billion were up 69% year over year. A similar performance is expected in the fiscal second quarter as well, with revenues projected at $46.03 billion, up 53.2% year over year.
Furthermore, NVIDIA’s earnings per share (EPS) are expected to come in at $1.00 compared to $0.68 in the same quarter a year ago, representing a 47.1% year-over-year increase. NVIDIA’s trailing four-quarter earnings surprise, on average, is a positive 3.9%, which suggests that the stock may deliver second-quarter growth.
Image Source: Zacks Investment Research
Why NVIDIA Could Post Solid Q2 Results?
NVIDIA’s new-generation Blackwell Ultra graphics processing units (GPUs) architecture is experiencing significant demand because it can execute artificial intelligence (AI) tasks 50 times quicker than the previous Hopper architecture. The shipping of these Blackwell Ultra GB300 GPUs started in large quantities during the latter half of the year. Since the fiscal second quarter includes July, there is a strong possibility that the sales of Blackwell Ultra GB300 GPU will enhance NVIDIA’s revenues and profits.
In the fiscal first quarter, NVIDIA lost $2.5 billion in sales and incurred a $4.5 billion charge due to the U.S. government restrictions on selling its H20 chips to China. However, in April, the Trump administration permitted NVIDIA to export its H20 chips to China, stipulating that the company must share 15% of its revenues from the sales of this chip with the government. Now, with NVIDIA expected to sell chips worth $8 billion to China in the fiscal second quarter, there is a strong possibility that removing the export restrictions will assist the company in recovering some of the revenues lost in the previous quarter and enhance its performance in the reporting quarter.
Buy, Hold, or Sell NVIDIA Stock Ahead of Q2 Earnings?
With NVIDIA’s H20 chips heading to China, and the demand for Blackwell chips remaining strong, an upbeat fiscal second-quarter results are on the cards, typically driving its stock price higher. Additionally, the future looks promising for NVIDIA as the company is set to benefit from ongoing growth in data center capital expenditures (capex). Its GPUs, which power data centers, are in demand as customers plan to increase their capex to establish more AI data centers to meet rising computing capacity needs.
Alphabet Inc. GOOGL and Meta Platforms, Inc. META have increased their 2025 data center capex forecast from $75 billion to $85 billion, and from $64 billion to $66 billion, respectively. Amazon.com, Inc. AMZN anticipates that its capex for data centers in 2025 will reach a record $118 billion, while Microsoft Corporation’s MSFT capex has already reached $88 billion for the fiscal year 2025, which concluded on June 30.
Therefore, it’s prudent for NVIDIA stakeholders to retain their stock for potential long-term benefits. New investors should wait until NVIDIA’s fiscal second-quarter results either surpass or align with analysts’ forecasts for the stock to rise further.
Given that NVIDIA’s top customers are boosting their capex in data centers, it’s unlikely that the fiscal second-quarter results will underperform expectations, presenting a timely opportunity for new investors to purchase the stock.
For now, NVIDIA has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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NVIDIA to Post Q2 Earnings: Buy, Hold, or Take Profits?

The second quarter of 2025 revealed a common pattern across the four U.S.-listed pure-play quantum companies, IonQ IONQ, D-Wave Quantum QBTS, Rigetti Computing RGTI and Quantum Computing Inc. QUBT. Each stock reported continued net losses as they scaled R&D and commercialization efforts, but simultaneously strengthened their balance sheets through significant fundraising to sustain ambitious technology roadmaps.
IonQ highlighted progress in advancing its Forte-class quantum computers,including the latest deals in Japan and South Korea, while reiterating its sizable cash runway. D-Wave posted a steep quarterly loss inflated by non-cash warrant charges but completed a successful $400 million At-the-Market (ATM) equity offering. Rigetti launched its Cepheus-1-36Q quantum computer with error-rate reductions and also made a $350 million equity raise that lifted its cash reserve. Last but not least, QUBT recorded only modest revenues but secured new academic, commercial, and government contracts while fortifying its position with a $188 million financing that boosted cash to $349 million.
Collectively, these companies remain far from profitability right now. However, these are leveraging investor capital and government partnerships to turn today’s financial losses into future quantum breakthroughs. For investors, this is the right time to dig deeper to assess whether backing these loss-making stocks now could, despite the risks, translate into meaningful long-term gains. Let's find out.
Year-to-Date Stock Comparison
Image Source: Zacks Investment Research
IonQ
In the second quarter, the company posted a net loss of $177.5 million, but simultaneously secured the largest-ever single institutional equity raise in the quantum industry, lifting its pro forma cash position to $1.6 billion. Management emphasized that this capital will underpin the expansion of its quantum computing and networking roadmap, including the acquisitions of Lightsynq and Capella and the proposed $1.075 billion purchase of Oxford Ionics, aimed at scaling to 800 logical qubits by 2027. IonQ’s commercial highlights included a $22 million EPB deal to build America’s first commercial quantum hub and new partnerships across Japan, South Korea, Sweden, and Australia.
Technically, this Zacks Rank #3 (Hold) stock showcased 20x speed-up in quantum-accelerated drug development with AstraZeneca, AWS and NVIDIA NVDA and advanced work with Oak Ridge National Laboratory on power grid optimization.
Image Source: IONQ Press Release
D-Wave
D-Wave also reported steep second-quarter losses, with a net loss of $167 million, heavily influenced by non-cash warrant revaluation charges. Yet its financial story was dominated by a successful fundraising round that added more than $500 million in equity, including $400 million gross proceeds from the fourth At-the-Market (ATM) equity program, boosting its cash balance to $819 million. These funds are intended to be used for acquisitions, accelerating R&D toward its 100,000-qubit roadmap and enhancing cryogenic packaging and error suppression.
Alongside the financing, D-Wave highlighted continued traction in annealing-based quantum solutions and recurring government contracts, highlighting its positioning as the only provider with a “production-ready” quantum system today. QBTS carries a Zacks Rank #3 now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Rigetti
Rigetti’s second-quarter performance also revealed the contrast between technological progress and deepening losses. The company introduced Cepheus-1-36Q, the industry’s largest multi-chip quantum computer, achieving record improvements in error rates. Yet, revenues fell to just $1.8 million, weighed down by the expiration of U.S. National Quantum Initiative funding and weaker gross margins. The company incurred $39.7 million in net loss, including significant non-cash charges from warrant and earn-out liabilities. Despite these setbacks, Rigetti bolstered its balance sheet with a $350 million equity raise, closing the quarter with $571.6 million in cash and no debt.
RGTI management emphasized that this liquidity provides critical runway for continued R&D, strategic partnerships and scaling toward its 100+ qubit roadmap, even as profitability remains distant. The stock also carries a Zacks Rank #3.
Image Source: Zacks Investment Research
Quantum Computing
QUBT’s second-quarter results highlighted the company’s early-stage nature, with revenues of just $61,000 against a steep net loss of $36.5 million, largely due to a non-cash warrant liability adjustment. Despite this widening loss profile, QUBT bolstered its balance sheet through a $200 million financing round, lifting its cash reserves to $349 million by quarter-end. This underscores the company’s reliance on external capital to sustain operations and fund growth initiatives.
Quantum Computing management is channeling these resources into advancing its quantum-photonic machines, scaling its newly operational Arizona chip foundry and expanding commercial adoption across research, enterprise and government sectors. The company, with a Zacks Rank #3, is projected to report a loss of 17 cents per share in 2025, 77% narrower than the year-ago period’s net loss per share.
Image Source: Zacks Investment Research
Our Take
Despite ongoing losses, IonQ, D-Wave, Rigetti and QUBT are steadily raising capital, forging partnerships, and advancing quantum roadmaps, moving the sector from hype to real infrastructure. Fresh funding fuels acquisitions and supports global expansion. For long-term investors, today’s volatility may be the entry point to tomorrow’s industry leaders, as quantum evolves from experimental science into a core pillar of the digital economy.
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Short-Term Pain, Long-Term Gain? 4 Quantum Stocks to Watch

Arm Holdings ARM has stayed at the center of chip sector discussions in 2025, but its recent market momentum tells a story of mixed sentiment and valuation scrutiny.
Over the past month, ARM shares have slipped nearly 15%, spurring debate among analysts about the sustainability of its high valuation and whether recent weakness is a buying opportunity or a warning sign.
Image Source: Zacks Investment Research
Four earnings downgrades for fiscal 2026 tilt sentiment bearish.
Image Source: Zacks Investment Research
The numbers sharpen that picture. ARM now trades with a price-to-earnings (P/E) ratio above 138 and a forward P/E of nearly 70, significantly outpacing the industry average of around 33. Such a valuation leaves little room for error, especially given increased R&D spend, growing competitive threats from China’s push into RISC-V chips, and potential partnership fallout if ARM expands into CPU manufacturing. Despite long-term dominance in mobile chip design (99% smartphone share) and strong inroads into AI data centers, the consensus now signals caution.
Image Source: Zacks Investment Research
ARM boasts strong gross margins and a solid $2.9 billion cash position. However, in the near term, risks are weighing than the potential upside, making the stock a tricky bet despite its longer-term growth story.
Beyond ARM: NVIDIA and Qualcomm are Better Valued
While ARM’s valuation may prompt caution, investors looking for semiconductor exposure with clearer financial traction might consider NVIDIA NVDA and Qualcomm QCOM. NVIDIA, with a forward 12-month P/E of 35, continues to dominate the AI accelerator space, driven by strong revenue and earnings growth, fueled by surging demand for its GPUs. The company’s leadership in AI infrastructure makes NVIDIA a favorite among growth-oriented investors.
Meanwhile, Qualcomm, trading at just 13x forward earnings, offers a more diversified chip portfolio spanning smartphones, automotive, and IoT. Its solid royalty business and increasing footprint in AI-powered edge devices position Qualcomm for steady expansion. Both NVIDIA and Qualcomm have demonstrated the ability to monetize their innovations more effectively than ARM, making them compelling alternatives.
ARM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Arm Holdings Faces Market Scrutiny Over Steep Valuation

The S&P 500 Index ($SPX) (SPY) today is up by +0.36%, the Dow Jones Industrials Index ($DOWI) (DIA) is up by +0.65%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.20%. September E-mini S&P futures (ESU25) are up +0.40%, and September E-mini Nasdaq futures (NQU25) are up +0.25%.
Stock indexes are moving higher today after five consecutive sessions of declines. Short covering and position squaring are lifting stocks ahead of a speech later this morning from Fed Chair Powell at the Fed’s annual symposium at Jackson Hole, Wyoming. The markets are waiting to see if Mr. Powell stays cautious on inflation or tilts toward supporting a softer labor market.
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Stocks may come under pressure today if Fed Chair Powell takes a hawkish tilt and expresses caution about cutting interest rates. Several Fed policymakers this week expressed concerns about inflation, with Cleveland Fed President Beth Hammack saying she’d oppose a Fed rate cut “if the meeting were tomorrow,” and Kansas City President Jeffrey Schmid and Chicago Fed President Goolsbee both said inflation remains too high. Solid US economic data and hawkish Fed commentary over the past week have reduced the chances of a 25 bp Fed rate cut at next month’s FOMC meeting to 71% from 93% last Thursday before the July PPI report.
Comments today from Boston Fed President Susan Collins were slightly hawkish when she said, US economic growth is slowing, but overall economic fundamentals are solid as she sees upside risks to inflation and downside risks on labor. She added that Fed policy is modestly restrictive, which is appropriate.
On the geopolitical front, US Vice President Vance said negotiations over ending Russia’s war in Ukraine are focused on security guarantees for Ukraine and territory Russia wants to control, including Ukrainian territory that it currently isn’t occupying, as the US tries to broker a peace deal between the two countries. The US is working to set up a meeting between Presidents Putin and Zelensky, and if that meeting goes well, President Trump said he’ll look to follow up with a trilateral summit with the leaders.
Regarding tariffs, President Trump widened steel and aluminum tariffs to include more than 400 consumer items that contain the metals, such as motorcycles, auto parts, furniture components, and tableware. The change went into effect on Monday and did not exclude goods already in transit. Last Friday, Mr. Trump said, “I’ll be setting tariffs next week and the week after on steel and on, I would say chips – chips and semiconductors, we’ll be setting sometime next week, week after.” Mr. Trump last week said he planned a 100% tariff on semiconductors but would exempt companies that move chip manufacturing to the US. Mr. Trump also mentioned 200% or 300% tariffs on chips.
In other recent tariff news, Mr. Trump last Tuesday extended the tariff truce with China for another 90 days until November. On August 6, Mr. Trump announced that he will double tariffs on US imports from India to 50% from the current 25% tariff, due to India’s purchases of Russian oil. On August 5, Mr. Trump said that US tariffs on pharmaceutical imports would be announced “within the next week or so.” According to Bloomberg Economics, the average US tariff will rise to 15.2% if rates are implemented as announced, up from 13.3% earlier, and significantly higher than the 2.3% in 2024 before the tariffs were announced.
Federal funds futures prices are discounting the chances for a -25 bp rate cut at 71% at the September 16-17 FOMC meeting, down from 93% last Thursday. The markets are discounting the chances at 50% for a second -25 bp rate cut at the following meeting on October 28-29.
Earnings reports indicate that S&P 500 earnings for Q2 are on track to rise +9.1% y/y, much better than the pre-season expectations of +2.8% y/y and the most in four years, according to Bloomberg Intelligence. With over 93% of S&P 500 firms having reported Q2 earnings, about 83% of companies exceeded profit estimates.
Overseas stock markets today are higher. The Euro Stoxx 50 is up +0.29%. China’s Shanghai Composite climbed to a new 10-year high and closed up +1.45%. Japan’s Nikkei Stock 225 recovered from a 1.5-week low and closed up +0.05%.
Interest Rates
September 10-year T-notes (ZNU5) today are up +4 ticks, and the 10-year T-note yield is down -2.2 bp to 4.306%. Sep T-notes are moving higher on short covering and position squaring ahead of comments later today from Fed Chair Powell at the Fed’s annual symposium in Jackson Hole, Wyoming. Gains in T-notes are limited by hawkish comments from Boston Fed President Susan Collins, who said modestly restrictive Fed policy is appropriate.
European government bond yields today are mixed. The 10-year German bund yield is down -0.9 bp to 2.748%. The 10-year UK gilt yield climbed to a 2.75-month high of 4.759% and is up +0.9 bp to 4.739%.
German Q2 GDP was revised lower to -0.3% q/q and -0.2% y/y from the previously reported -0.1% q/q and unchanged y/y.
Swaps are discounting the chances at 2% for a -25 bp rate cut by the ECB at the September 11 policy meeting.
US Stock Movers
Strength in chipmakers is supporting gains in the broader market. ON Semiconductor (ON), Intel (INTC), Texas Instruments (TXN), GlobalFoundries (GFS), Analog Devices (ADI), ASML Holding NV (ASML), and NXP Semiconductors NV (NXPI) are up more than +1%.
Ubiquiti (UI) is up more than +19% after reporting Q4 revenue of $759.2 million, well above the consensus of $621 million.
Zoom Communications (ZM) is up more than +6% after reporting Q2 revenue of $1.22 billion, better than the consensus of $1.20 billion, and raising its 2026 revenue forecast to $4.83 billion-$4.84 billion from a previous estimate of $4.80 billion-$4.81 billion, stronger than the consensus of $4.81 billion.
Ross Stores (ROST) is up more than +3% to lead gainers in the S&P 500 after reporting Q2 EPS of $1.56, above the consensus of $1.53. Chairman Wang sold 5 million shares in an overnight registered block trade between $116 and $118 per share.
PDD Holdings (PDD) is up more than +3% to lead gainers in the Nasdaq 100 on bullish optimism for Chinese stocks after the Shanghai Composite rallied to a new 10-year high today.
Esab Corp (ESAB) is up more than +2% after Loop Capital Markets upgraded the stock to buy from hold with a price target of $140.
Qxo Inc (QXO) is up more than +1% after Benchmark Company LLC initiated coverage on the stock with a recommendation of buy and a price target of $50..
Ulta Beauty (ULTA) is up more than +1% after Barclays upgraded the stock to overweight from equal weight with a price target of $589.
Intuit (INTU) is down more than -7% to lead losers in the S&P 500 and Nasdaq 100 after forecasting 2026 adjusted operating income of $8.61 billion-$8.69 billion, the midpoint below the consensus of $8.67 billion.
Workday (WDAY) is down more than -6% after reporting an unexpected -$5 million loss in Q2 professional services adjusted gross profit versus expectations of a $9.5 million profit.
Nvidia (NVDA) is down -0.60% to lead losers in the Dow Jones Industrials after reports the company has instructed component makers, including Samsung and Amkor, to stop production related to H20 AI chips for China.
Paramount Skydance (PSKY) is down more than -1% after Guggenheim Securities downgraded the stock to neutral from buy.
Earnings Reports(8/22/2025)
BJ’s Wholesale Club Holdings Inc (BJ), Buckle Inc/The (BKE), New Fortress Energy Inc (NFE), Ubiquiti Inc (UI).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Higher Ahead of Fed Chair Powell’s Comments

Few companies embody the AI-driven semiconductor boom more than Nvidia (NVDA) and Marvell Technology (MRVL). Nvidia has been the undisputed leader in AI GPUs, powering nearly every major AI application, while Marvell has carved out a niche in custom chips for hyperscalers and critical networking infrastructure. Both names sit at the center of one of the most powerful investment themes of this decade.
So far in 2025, the stocks have taken divergent paths. Nvidia shares are up roughly 30% year-to-date, easily outpacing the S&P 500’s 9% gain, while Marvell has struggled, down about 32% YTD despite the semiconductor sector gaining 16%. That split underscores just how much investor sentiment, and execution matters in an industry where expectations are sky-high.
Despite the different outcomes so far this year and very different positions in the industry, both companies look appealing heading into next week’s earnings. With Nvidia as the clear market leader and Marvell carving out a valuable niche, the two offer complementary ways to gain exposure to the AI boom within a broader portfolio.
Image Source: Zacks Investment Research
NVDA and MRVL Earnings Offer Valuable Industry Insight
For Marvell, consensus estimates call for EPS of $0.67 on revenue of $2.01 billion, implying 123% EPS growth and 58% revenue growth compared to the same quarter last year. That puts Marvell among the fastest-growing large-cap semiconductor companies, though analysts have left estimates flat over the past two months, signaling a “wait-and-see” approach. With uncertainty around China exposure and macro conditions, guidance will be just as important as headline numbers. Marvell reports next Thursday, August 28 after the market close.
For Nvidia, expectations are once again enormous. Analysts are looking for EPS of $1.00 on $46.03 billion in revenue, up 47.1% and 53.2% year-over-year, respectively. While revisions have only edged about 1% higher in the past two months, Nvidia carries a Zacks Earnings ESP of +3.14%, pointing to the potential for another beat. The key questions heading into the release will be demand from hyperscalers and margin sustainability. Nvidia reports next Wednesday, August 27 after the market close.
Valuation of Both MRVL and NVDA Seem Reasonable for Growth
Valuation offers some contrast between the two names. Nvidia trades at 41.1x forward earnings, a premium multiple that reflects both its dominant market share and unmatched growth trajectory. Investors have largely accepted this premium as justified given Nvidia’s entrenched leadership in AI semiconductors.
By comparison, Marvell trades at roughly 25x forward earnings, a notable discount to Nvidia and other high-growth AI chipmakers. Marvell’s valuation may have overheated earlier this year, but the subsequent sharp correction has reset the stock to a far more compelling level. If the company can execute its ambitious growth forecasts, particularly in custom AI chips and cloud infrastructure, the stock looks very attractively priced on a risk-reward basis.
Image Source: Zacks Investment Research
Expectations for Marvell and Nvidia Stock Heading into Earnings
Nvidia and Marvell represent two very different stories within the same booming AI ecosystem. Nvidia remains the clear leader and bellwether, with growth and profitability metrics that continue to defy its scale. Marvell, meanwhile, is trying to prove it belongs among the AI elite, with execution and guidance now critical after a turbulent year.
Both stocks will be closely watched in the days ahead. Nvidia’s results have the potential to reinforce its role as the sector’s anchor, while Marvell could surprise investors with a relief rally if it shows traction in AI-driven revenue and improved margins. Either way, these two reports will set the tone for AI semiconductor sentiment heading into the fall.
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Nvidia & Marvell Technology: AI Chip Stocks Ahead of Earnings

NVIDIA Corporation’s NVDA Data Center business has become its primary growth engine, driven by increasing demand for artificial intelligence (AI) infrastructure. In the first quarter of fiscal 2026, Data Center revenues jumped 73.3% year over year and 9.9% sequentially to $39.1 billion. This robust growth was primarily driven by the strong adoption of the new Blackwell platform and continued orders from hyperscalers like Microsoft, Google and Amazon.
The near-term outlook seems bright for the Data Center business. Continued buildouts of AI factories worldwide, as well as growing orders from governments and enterprises looking to secure sovereign AI infrastructure are likely to continue driving demand for NVIDIA’s AI chips.
The company’s networking business, including NVLink and Spectrum-X, is also contributing to growth by enabling faster and more efficient data movement within AI clusters. These add-ons make NVIDIA’s full-stack approach more appealing to enterprises and governments building AI infrastructure.
Latest approval from the U.S. government for exporting H20 AI chips to China will further boost its Data Center revenues. Additionally, NVIDIA is reportedly working on developing less powerful Blackwell architecture AI chips specially for China, which could further aid Data Center prospects.
NVIDIA’s deep integration of hardware, networking and software gives it a strong position. The company’s leadership in AI infrastructure suggests that its Data Center segment is well placed to sustain momentum. The Zacks Consensus Estimate for fiscal 2026 Data Center revenues is pegged at $177.42 billion, indicating strong year-over-year growth of 54%.
NVIDIA’s Rivals Pushing to Capture AI Data Center Demand
While NVIDIA leads in AI data centers, rivals Advanced Micro Devices AMD and Intel INTC are working hard to expand their presence.
Advanced Micro Devices is witnessing growing adoption for its MI300X GPUs. Several hyperscalers are testing AMD’s solutions as alternatives to NVIDIA’s Blackwell, especially in cost-sensitive or specialized AI workloads. Advanced Micro Devices is also building a strong software stack to grab more customers.
Intel is focusing on both CPUs and AI accelerators to grab a market share in the data center space. The company is promoting its Gaudi 3 AI chips as a low-cost option for training and inference. Intel is also working with major cloud providers to expand the adoption of its AI hardware.
NVIDIA’s Price Performance, Valuation and Estimates
Shares of NVIDIA have risen around 30.3% year to date compared with the Zacks Computer and Technology sector’s gain of 10.7%.
YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 34.78, higher than the sector’s average of 27.24.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 42.8% and 32.6%, respectively. Estimates for fiscal 2026 and 2027 earnings have been revised upward in the past seven days.
Image Source: Zacks Investment Research
NVIDIA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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NVIDIA's Data Center Grows Fast: Can It Sustain the Momentum?

NVIDIA Corporation NVDA is likely to beat on earnings when it reports second-quarter fiscal 2026 results on Aug. 27, after market close.
The company expects revenues of $45 billion (+/-2%) for the quarter. The Zacks Consensus Estimate is pegged at $46.03 billion, which indicates a whopping 53.2% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings has moved up a penny to $1.00 per share over the past 60 days. This suggests year-over-year growth of 47.1% from the year-ago quarter’s earnings of 68 cents per share.
Image Source: Zacks Investment Research
Earnings of the graphics chip maker surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average surprise of 3.9%.
NVIDIA Corporation Price and EPS Surprise
Earnings Whispers for NVIDIA
Our proven model predicts an earnings beat for NVIDIA this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.03 per share) and the Zacks Consensus Estimate ($1.00), is +3.14%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVDA carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence NVIDIA’s Q2 Results
NVIDIA’s second-quarter top line is likely to have benefited from the continued strength in its Data Center business. The increasing adoption of cloud-based solutions amid the growing hybrid working trend is anticipated to have boosted demand for its chips across the Data Center end market. An increase in hyperscale demand and growing adoption in the inference market are likely to have acted as tailwinds in the to-be-reported quarter.
The Data Center end-market business should have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Blackwell architectures. The strong demand for its chips from large cloud service and consumer internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter. Our model estimate for Data Center’s second-quarter revenues is pegged at $40.19 billion, which indicates robust year-over-year growth of 53%.
Moreover, NVIDIA’s second-quarter performance is likely to have benefited from the recovery across its Gaming and Professional Visualization end markets. The Gaming end market’s results have improved year over year in seven out of the last eight quarters, as inventory levels with channel partners have returned to normal. The company also registered strong demand across most regions for its gaming products. Our model estimate for the Gaming end market’s second-quarter revenues is pegged at $3.81 billion, which implies a 32.4% increase from the year-ago quarter’s level.
NVIDIA’s Professional Visualization segment’s performance also reflected recovery, with revenues increasing in seven consecutive quarters. The trend is likely to have continued in the second quarter. Our model estimate for the Professional Visualization end market’s second-quarter revenues is pegged at $529.1 million, which suggests a 16.5% increase from the year-ago quarter’s figure.
The company’s Automotive segment demonstrated an improvement in trends over the preceding five quarters. The positive trend is likely to have continued in the fiscal second quarter due to increasing investments in self-driving and AI cockpit solutions. Our model estimate for the Automotive end market’s second-quarter revenues is pegged at $591.6 million, which indicates year-over-year growth of 67.7%.
NVIDIA Stock Price Performance & Valuation
Shares of NVIDIA have remained highly volatile over the past year. NVDA stock has gained 35.3% over the past year, outperforming the Zacks Computer and Technology industry’s growth of 18.7%. The stock has also outperformed major semiconductor stocks, including Intel INTC, Advanced Micro Devices AMD and Marvell Technology MRVL. Shares of Intel and Advanced Micro Devices have gained 14.4% and 5.7%, respectively, while Marvell Technology stock has declined 0.8%.
One-Year Price Return Performance
Image Source: Zacks Investment Research
Now, let’s look at the value NVIDIA offers investors at the current levels. NVIDIA is trading at a premium with a forward 12-month price-to-earnings (P/E) of 34.78X compared with the sector’s 27.24X, reflecting a stretched valuation.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
Compared with other chip giants, NVDA trades at a premium against Advanced Micro Devices and Marvell Technology, while at a discount to Intel. Currently, Intel, Advanced Micro Devices and Marvell Technology trade at a forward P/E of 47.62X, 31.62X and 22.16X, respectively.
Investment Consideration for NVIDIA
Over the past year, NVIDIA’s revenue growth has been driven by robust demand for chips required for the development of generative AI models. NVIDIA dominates the market for generative AI chips, which have already proven useful across multiple industries, including marketing, advertising, customer service, education, content creation, healthcare, automotive, energy & utilities and video game development.
The growing demand to modernize the workflow across industries is expected to drive the demand for generative AI applications. The global generative AI market size is anticipated to reach $967.6 billion by 2032, according to a new report by Fortune Business Insights. The market is expected to witness a CAGR of 39.6% from 2024 to 2032.
The complexity of generative AI requires vast knowledge and immense computational power. This means that enterprises will need to significantly upgrade their network infrastructures. NVIDIA’s AI chips, including the A100, H100, B100, B200 and GB200, are the top choices for building and running these powerful AI applications, positioning the company as a leader in this space. As the generative AI revolution unfolds, we expect NVIDIA's advanced chips to drive substantial growth in its revenues and market presence.
Conclusion: Hold NVDA Stock for Now
As a leading player in the semiconductor industry, NVIDIA has benefited from its dominance in GPUs and strategic expansion into AI, data centers and autonomous vehicles. The company's strong product portfolio, leadership in AI and relentless innovation present a compelling investment opportunity.
However, its high valuation makes it vulnerable to short-term volatility. For now, holding the stock is the smartest approach.
One Big Gain, Every Trading Day
To help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.
Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.
Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.
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NVIDIA Likely to Beat Q2 Earnings Estimate: How to Play the Stock?

Key Points
Super Micro Computer stock fell by over 20% after the company’s latest quarterly earnings release on Aug. 5.
The artificial intelligence (AI) data center builder’s shares have found support, but this could be temporary.
As three key issues with Supermicro persist, shares could keep on sinking.
On Aug. 5, 2025, Super Micro Computer (NASDAQ: SMCI) released results for the company's fiscal fourth quarter, ending June 30, 2025. The artificial intelligence (AI) server maker's shares fell by over 20% on disappointing results and guidance.
Since then, the stock has started to retreat. However, perhaps the dust hasn't settled, and this could instead be the calm before the storm.
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Three issues persist, all of which could continue to impact Supermicro's growth, profitability, and the value of its shares: falling market share, squeezed margins, and the threat of losing key customers.
Why SMCI stock tanked after earnings
On both revenue and earnings, Supermicro's Q4 FY2025 results fell short of analysts' expectations:
Metric
Analyst Forecast (Q4 2025)
Actual Results (Q4 2025)
Revenue
$6 billion
$5.8 billion
Adjusted earnings per share (EPS)
$0.45
$0.41
On a year-over-year basis, Supermicro's Q4 revenue increased by only 7.5%, a far slower pace than in prior quarters. Even worse, the company's adjusted EPS fell by 24% year over year, a wider-than-expected decline.
CEO Charles Liang may have blamed the revenue miss on delayed revenue recognition and the earnings miss on recent tariff hikes. Still, I believe the market took these disappointing results as a sign that the competition continues to get the better of Supermicro.
Alongside disappointing quarterly results, the company also released disappointing updates to guidance. Full-year revenue guidance of $33 billion, or 50% above reported FY2025 revenue, may sound impressive, but previously, the company was guiding for $40 billion in revenue for the fiscal year ending June 30, 2026.
Furthermore, with Q1 FY2026 guidance calling for between $6 billion and $7 billion in revenue, it's questionable whether Supermicro can even hit its walked-back revenue target for the full year.
While the company's quarterly results fell short, its annual revenue came in ahead of expectations, growing by 47% over the prior fiscal year. Still, given the latest slowdown and decline in revenue and profitability, I'm skeptical that a rebound is just a few quarters away.
Supermicro's growth, profitability, and stock price remain under threat
Trading for around 25 times annual earnings, Supermicro trades at a premium to direct competitors like Dell Technologies (NYSE: DELL) and Hewlett Packard Enterprise (NYSE: HPE). Dell and HPE both currently trade for 20 times earnings.
In the past, Supermicro's valuation premium made sense. After all, this company was an early mover, capitalizing on its strong ties with Nvidia (NASDAQ: NVDA) to quickly bring out cutting-edge AI server products. However, since then, competitors have gained a greater edge.
In turn, this has led to a sharp decline in market share, a trend that is one of three reasons why I'm cautious about Supermicro stock right now. Between 2022 and 2024, the company's share of the AI server market fell from at least 80% to between 40% and 50%.
Further declines may lie ahead. Last month, analysts at Bank of America (BofA) argued that rivals Dell and HPE are better positioned to win new business from enterprise clients. This makes sense, given their existing relationships with such clients.
Additional market share losses could result in a further slowdown in sales growth, but that's not all. High competition could also place further pressure on margins, the second reason I'm concerned about this stock. In recent years, Supermicro's gross margins have shrunk from 18% to 9.5%.
An additional squeeze is possible. Back in June, analysts at KeyBanc argued that a lack of product differentiation points to Supermicro having to compete on price to sustain higher growth. The impact of this on margins could counter the positive impact of a sales resurgence.
To top it all off, there's another long-standing risk with Supermicro that also makes me concerned about future performance: the risk of losing major customers. Reportedly, key customers like CoreWeave and X.ai have started placing AI server orders with Dell. If these customers fully switch over to a competitor for their AI server needs, this could materially affect Supermicro's future revenue and earnings.
Bottom line: I'm sticking to the sidelines
If the aforementioned issues lead to an additional growth slowdown and/or drop in profitability, the impact on the price of Supermicro shares could be significant.
Over the past 12 months, this stock has traded for as low as $17.25 per share. Supermicro could retrace this past low if quarterly results continue to disappoint, management keeps walking back expectations, and SMCI's valuation premium to Dell and HPE continues to erode.
Given these risks, I'm waiting things out -- at least until subsequent developments emerge that help to assuage my concerns.
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Bank of America is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Thomas Niel has no positions in any of the stocks mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Reasons Why I Wouldn't Buy the Dip on Super Micro Computer Stock Yet

Nvidia (NASDAQ: NVDA) closed down 0.2% at $174.98 on Thursday, with trading volume of 135 million shares, below its three-month average of 181 million. The modest decline contrasted with weakness in the broader market, where the S&P 500 (SNPINDEX: ^GSPC) fell 0.4% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) slipped 0.3%.
Among peers, Advanced Micro Devices (NASDAQ: AMD) dipped 0.9% to $163.71, while Intel (NASDAQ: INTC) edged down 0.2% to $23.50. The pullback was consistent across the semiconductor sector as investors weighed broader macroeconomic pressures.
Despite the day's losses, Wall Street remains broadly bullish on Nvidia's prospects, particularly around its leadership in AI and data center markets. Several analysts have raised their price targets in recent weeks, signaling continued conviction in its long-term growth story. Among them, Wedbush lifted its target to $210 from $175, UBS raised its target to $205 from $175, and Piper Sandler boosted its target to $225 from $180. Cantor Fitzgerald also moved higher, setting its price target at $240 from $200. These upward revisions reflect broad Wall Street confidence in Nvidia. The wave of upgrades underscores growing conviction that Nvidia's fundamentals remain strong.
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Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-4o, OpenAI's large-scale language generation model and has been reviewed by The Motley Fool's AI quality control systems. The Motley Fool has positions in and recommends Advanced Micro Devices, Intel, and Nvidia. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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