NEW YORK — Wall Street is on edge as Nvidia, the leading AI chipmaker, prepares to release its fiscal second-quarter earnings after the market close on August 27, 2025. The report, highlighted by The Wall Street Journal, is poised to influence broader tech momentum, with investors bracing for volatility amid concerns over lofty valuations and a recent government revenue-sharing deal. Nvidia’s stock, up 35% year-to-date, has been a key driver of the tech sector’s rally, but skepticism about AI returns is growing.
Analysts expect Nvidia to report $45.9 billion in revenue, a 53% jump from last year’s $30.04 billion, and earnings of $1.00 per share, up 47% from $0.68, fueled by demand for its Blackwell GPUs. “Nvidia’s results are a bellwether for AI’s trajectory,” a Morgan Stanley analyst told The Wall Street Journal, noting the company’s 92% share of the AI chip market. However, a recent $8 billion revenue hit from U.S.-China export restrictions and a 15% revenue-sharing agreement with the U.S. government for H20 chip sales to China have raised concerns about margins.
Key factors investors are watching include:
- Blackwell GPU sales, projected to hit $20.4 billion in Q2.
- Forward guidance for Q3, with analysts expecting $52 billion in revenue.
- Impact of China’s push to avoid Nvidia’s H20 chips, potentially denting growth.
Despite a 33% stock surge since its last report, Nvidia’s price to earnings ratio of 55.7 signals high expectations, with some analysts warning of a potential pullback if guidance disappoints. Posts on X reflect mixed sentiment, with some users bullish on AI demand and others wary of overvaluation. As Big Tech’s AI spending soars Amazon and Alphabet plan $203 billion combined in 2025 Nvidia’s earnings could either reignite tech enthusiasm or deepen the sector’s current stall.
Source: The Wall Street Journal
