Valued at a whopping $4.5 trillion by market capitalization, Santa Clara, California-based NVIDIA Corporation (NVDA) is the world’s largest semiconductor company. The company’s invention of the GPU revolutionized PC gaming and redefined computer graphics. Over the years, NVIDIA has pivoted toward designing advanced AI chips, which now serve as the backbone of generative AI.
The semiconductor giant is preparing to release its third-quarter results next month. Ahead of the event, analysts expect NVIDIA to report earnings of $1.17 per share, a staggering 50% higher than the $0.78 per share reported in the prior-year quarter. While the company missed final Street estimates once in the past four quarters, it beat projections three other times.
For all of fiscal 2026, NVIDIA is expected to generate EPS of $4.22, up a notable 44% from $2.93 in fiscal 2025. While in fiscal 2027, its earnings are expected to grow 40.3% year-over-year to $5.92 per share.
NVDA stock prices have soared 32.7% over the past 52 weeks, notably outpacing the S&P 500 Index ($SPX)’s 16.9% gains and the Technology Select Sector SPDR Fund’s (XLK) gain of 28.1% over the same time period.
NVIDIA stock prices saw a marginal decline in the trading session following the release of its second quarter results on August 27. During the quarter, the company posted a staggering 49% year-over-year growth in gaming revenue to $4.3 billion and an even more impressive 56% increase in data center revenue to $41.1 billion. Overall, NVIDIA’s top line revenue totaled $46.7 billion, up 55.6% year-over-year and 1.3% above Street expectations. Meanwhile, its EPS rose 29.6% year over year to $1.05, beating consensus estimates by a notable margin.
However, due to policy changes and trade restrictions, the company was unable to sell any of its high-tech H20 chips to China-based customers during the quarter, which did not go down well with investors.
Analysts remain very optimistic about the stock’s prospects. NVDA maintains an overall consensus rating of “Strong Buy.” Of the 47 analysts covering the stock, opinions include 40 “strong buys”, two “moderate buys”, four “holds” and one “strong sell”. Its $222 average price target suggests 19.2% upside potential from current price levels.
On the date of publication, Aditya Sarawgi had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com