Nvidia Stock Price Forecast: Earnings Beat Expectations Across the Board, Shares Could Reach $300

Based on this earnings report, demand for Nvidia's AI chips continues to maintain high-speed growth. Second-quarter Data Center revenue reached $89 billion, up 117% year-over-year and exceeding the $85.08 billion expected by analysts surveyed by LSEG. The company also expects third-quarter revenue to reach $108 billion ± 2%, significantly higher than the market's previous expectation of around $104.2 billion. In other words, computing power demand from big tech companies, AI labs, and cloud service providers has yet to show any noticeable slowdown.

Vera Rubin has become a key variable for the next phase of growth. Nvidia confirmed that Rubin has begun shipping to customers and expects it to contribute approximately 20% of Data Center revenue in the third quarter. This means the next-generation product cycle following Blackwell has already begun generating actual revenue. For NVDA's stock price, Rubin's smooth ramp-up has eased market concerns about a potential product cycle gap after the end of Blackwell's high-growth period.

However, the earnings report also highlighted a clear pressure point: gross margin may decline. Adjusted gross margin for the second quarter was 75%, but the company expects it to drop to around 74% in the third quarter and potentially fall further to 71%–72% in the fourth quarter, primarily driven by rising memory chip prices and increased costs for other components. This projected decline in gross margin was a key reason why the company's stock price came under pressure in after-hours trading following the release of the earnings report.

What reversed the trajectory of the after-hours stock price, however, was the longer-term growth forecast provided by management, turning an initial after-hours drop into a gain of nearly 5%. Nvidia expects fiscal year 2028 revenue to grow by approximately 70% year-over-year, far above Wall Street's pre-earnings expectation of about 44%. CEO Jensen Huang further stated that if not for supply constraints, the company's revenue next year could even come close to doubling again.

Nvidia weekly stock price chart, Source: TradingView

Judging from Nvidia's weekly stock price chart, the overall trend displays a clear upward trajectory. During recent gains, the stock came under pressure and weakened when retesting the resistance level near $230, softening short-term bullish momentum; however, with Nvidia releasing better-than-expected financial results along with strong future growth expectations, market bullish sentiment has recovered.

On the upside, the primary resistance level to watch above is $228–$230, followed by the historical high of $236.54. A breakout above this level would open up upside room toward the $300 mark.

On the downside, the primary support level to watch below is $207. If it falls below this level, the stock may test the $200 mark, and if this level fails to hold, the price could further drop toward $190.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.