Nvidia Q2 Preview: What's at Stake This Wednesday

Nvidia NVDA, the AI chip giant, reports its Q2 fiscal 2026 earnings after the market closes on Wednesday, August 27. As always, this report is the most important report until the next, but analysts will focus on the stage of the AI build-out and the growth trajectory ahead. Wall Street is expecting a non-GAAP EPS of about $1.01 on revenue of approximately $46.0 billion, which would reflect a 53% growth YoY on the top line for a $4 trillion company.

The priority for investors is the rollout of the Blackwell architecture, Nvidia's next-generation GPU. While the company's past products, like the H100, have been the backbone of the AI boom, investors want clarity on the production ramp, customer adoption, and the expected revenue contribution from Blackwell.

At the same time, investors are keen to understand AI demand. After the hyperscalers increased capex guidance, investors have raised the bar for Nvidia. Therefore, guidance will be decisive. A confident tone with clear visibility into second-half demand could maintain the stock momentum after the 30% rally in the last month. Beyond revenue, gross margins will be watched closely, with management guiding to about 72% this quarter.

Another topic that investors need some clarity on is the Chinese market. US export restrictions have weighed on Nvidia's China-specific business, leading to a $4.5 billion charge in Q1 of fiscal 2026 associated with H20 inventory. In a recent twist, the Trump administration announced a deal allowing Nvidia and AMD AMD to sell the H20 and MI308, respectively, to China in exchange for a 15% revenue share with the U.S. government. Nevertheless, the Chinese government told local tech companies to stop buying the chips due to alleged security concerns, and Nvidia has reportedly asked some of its component suppliers to halt production tied to its made-for-China H20 graphics chips. With all this back and forth, investors will be looking for some clarity about this market.

This earnings call is a high-stakes moment for the most valuable chipmaker in the world. It will not only tell Nvidia's story but also provide a powerful signal about the durability of the AI gold rush.