Nvidia's (NVDA) shares have just ended their longest losing streak in four years, falling for six straight sessions before closing at $214.72 on Friday. The stock was down 4.7% from its Aug. 13 high of $225.30. Despite another day back in the red on Monday, it is back in the green today and has rebounded 12% from its July 29 low of $190.01 and remains up nearly 14% so far this year.
The pullback comes ahead of Nvidia’s fiscal Q2 earnings report after the market closes on Wednesday, Aug. 26. Analysts expect earnings of $2.01 per share, more than double the amount reported in the same quarter last year.
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Meanwhile, BMO Capital Markets has added a fresh vote of confidence. The firm started coverage of several semiconductor and quantum-computing stocks and named Nvidia its Top Pick for AI exposure. Analyst Harsh Kumar set a $340 price target, pointing to an over 60% upside from current levels.
What exactly is fueling this level of conviction just days before the company reports? Let’s find out.
Nvidia’s Financial Strength
Nvidia makes the chips, networking equipment, and software used to run AI workloads. Its Data Center unit is now the main source of revenue and profit. NVDA stock has gained 18% over the past 52 weeks and about 14% year-to-date (YTD).
www.barchart.com NVDA trades at 25.19x forward earnings, slightly above the sector average of 23.17x. It pays an annual dividend of $0.28 per share, for a 0.13% yield, below the technology sector average of 1.37%. The latest quarterly dividend was $0.25 per share, with a June 4, 2026, record date. Nvidia has increased its dividend for three straight years and has a low 0.70% forward payout ratio, leaving most of its cash available for expansion and stock buybacks.
In fiscal Q1 2027, revenue reached a record $81.6 billion, up 85% from a year earlier and 20% from $68.1 billion in the prior quarter. Revenue was $44.1 billion in the year-ago quarter. GAAP gross margin was 74.9%. GAAP operating income rose 147% to $53.5 billion, while net income jumped 211% to $58.3 billion. And the GAAP diluted EPS increased 214% to $2.39, while non-GAAP EPS rose 140% to $1.87.
During the quarter, Nvidia returned about $20 billion to shareholders through buybacks and dividends. It had $38.5 billion left under its prior repurchase authorization and approved a further $80 billion in May. For fiscal Q2 2027, management forecasted $91 billion in revenue, plus or minus 2%, excluding any Data Center compute revenue from China.
Growth Engines Behind Nvidia
Nvidia has partnered with Apollo Global Management (APO), BlackRock (BLK), Blackstone (BX), Brookfield (BN), Goldman Sachs (GS), and KKR (KKR) to help finance more AI computing projects. The firms plan to build independent financing platforms that could bring in over $500 billion in third-party capital over time. The goal is to give Nvidia’s customers, including AI labs, businesses, and cloud providers, access to dedicated funding at competitive rates for new computing infrastructure.
Nvidia has also formed a long-term partnership with Ilya Sutskever’s Safe Superintelligence Inc. The company invested in Safe Superintelligence and will give it access to Nvidia’s upcoming Vera Rubin platform. Safe Superintelligence expects to increase its computing capacity by 10x. The companies will also work together on future Nvidia computing systems, using Safe Superintelligence’s research to guide product development.
In Asia, Nvidia and SK Group have signed letters of intent for a partnership worth more than $500 billion. It covers the construction of AI factories and supplies of next-generation memory. SK Telecom plans to build a 2-gigawatt AI cloud in South Korea using Nvidia’s DSX platform, Vera Rubin systems, and SK Hynix (SKHY) HBM4 memory. The first factory is expected to start operating in 2027 and will serve government, business, and other AI users across the Asia-Pacific region.
Wall Street’s View of NVDA Stock
Nvidia will report results for the July 2026 quarter after the market closes on Aug. 26. Analysts expect adjusted earnings of $2.09 per share, up 111.11% from $0.99 in the same quarter last year. For fiscal 2027, Wall Street expects earnings of $8.80 per share, up 92.56% from $4.57 in the prior year.
BMO Capital Markets started coverage of NVDA stock with an “Outperform” rating and a $340 price target. Analyst Harsh Kumar called Nvidia the firm’s preferred large-cap chip stock. He said the company’s systems are booked for the next 12 months, with demand still higher than supply. Kumar also pointed to the expected second-half rollout of the Vera Rubin NVL72 system.
GF Securities analyst Jeff Pu is also bullish on Vera Rubin. He raised his price target to $345 from $308 and kept a “Buy” rating, pointing to rising orders from major U.S. cloud companies. Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG) (GOOGL), and Oracle (ORCL) are reportedly increasing orders for Vera Rubin systems. That demand could help Nvidia hold its ground against Google’s TPU chips and Amazon’s Trainium chips.
The 48 analysts covering NVDA rate the stock a consensus “Strong Buy.” Their average price target of $306.92 points to about 45% upside from current levels.
www.barchart.com Conclusion
BMO’s Top Pick designation reinforces the case that Nvidia remains one of the clearest ways to participate in AI infrastructure spending. The firm sees value in Nvidia’s full-stack platform, market share, and Vera Rubin ramp, while broader analyst targets still point to substantial upside. In the near term, however, NVDA’s direction rests on its Aug. 26 results and, more importantly, management’s outlook. Given the demand signals around new systems and the company’s earnings momentum, shares appear more likely to trend higher over the medium term. Still, expectations are high, so a post-earnings pullback remains possible if guidance fails to exceed an already bullish bar.
On the date of publication, Ebube Jones 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.
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