NVIDIA Q2 Revenue: Tip Expenses, China focuses on stocks that are close to high

Decades ago, Jensen Fan reportedly said Nvidia was needed to “kill” Inter. Now, rival chipmakers are in the corner with the US government.

Under Trump's leadership, US taxpayers are now Intel's largest shareholder. According to “The Nvidia Way: Jensen Huang and The Making of a Tech Giant,” Huang said in 1997 that after Nvidia decided to create its own graphics chip, Intel should be removed.

“They're going to let us go out of business,” Juan said. “Our job is to kill them before they let us go out of business. We need to kill Intel.”

Questions remain about how the Intel-US government partnership works. Treasury Secretary Scott Bescent said the White House would not use its shares to put pressure on companies to do business with Intel before the agreement was completed.

Huang led Nvidia to blow its way through a once-strong competitor, but Intel now has strong supporters in the US government. This has a topic that is likely to appear in analyst calls.

– Brent D. Griffith

Demand for NVIDIA's GB200 chips is expected to see “significant acceleration” with sold-out shipments until July, and the momentum was written in a memo, passing through the second half of this year.

Nvidia is also ready to release the GB300 AI chip, which will be released in late September.

“The competitive landscape of AI GPUs remains in a very favorable position for Nvidia, as in the second half and next year,” the company wrote in a memo on Monday.

Baird repeated its “outperform” ratings on its stock, increasing its price target from $195 to $225 per share, meaning a 25% increase.

In Nvidia's final revenue call, Huang said Chipmaker has more Blackwell orders than it was in the GTC conference.

The CEO said Nvidia will increase its supply chain in the US and “build it on the coast here.” Companies are usually unable to shift their supply chains overnight, but analysts will want updates on chip makers' progress.

– Ana Altchek

Nvidia is likely to beat revenue, Jpmorgan said it estimates Chipmaker will report revenues of between $46 billion and $47 billion in quarter.

The bank also predicted that NVIDIA will issue revenue guidance of $53 billion to $54 billion in the fourth quarter thanks to healthy demand for GB200 chips and Blackwell Rack.

“We believe that the foundations of recent AI are driven by strong upper-scale CAPEX spending, a trend stated on Monday by cloud/hyperscale companies' upward revisions to CAPEX during the second quarter 2025 revenue season, as well as strong outcomes/guidance telegraphed by other AI beneficiaries.

Analysts repeated their “overweight” ratings on the stock.

Chinese semiconductor company Cambricon reported record profits in the first half of the year, with revenues reaching $420 million.

It's still far below Nvidia's $44 billion revenue since the last quarter, but it's making great strides as one of several local competitors has gained positions while Nvidia works to maintain its regional advantage. Huang may face questions about how he plans to maintain his advantage in China, particularly amid the ongoing US-China trade tensions.

– Ana Altchek

Stifel analysts said they hope Nvidia will beat its quarterly revenue estimates and post “sound” guidance for the third quarter, thanks to strong demand for chips.

“The long-term bull emphasizes that AI-led demand remains strong and that NVDA should at least maintain AI-Accelerators' market leadership,” they wrote.

They continued: “As today, we are more leaning towards the bull incident, while underscoring the risks on its supply side (including tariffs and trade regulations) are important overhangs in its name.”

Analysts repeated the “buy” ratings on the stock, increasing their price target from the previous $202 to $212, upside down 18%.

Evercore analysts expect AI Capex to rise 72% in 2025, adding that cloud demand in companies such as Amazon and Azure suggests that AI will “reach a turning point in the enterprise.”

Industry checks also suggest that there is strong demand for Nvidia's Blackwell product line, and that its software is a “solution of choice” for training large language models.

“NVDA believes that we can ultimately capture a weighting of up to 16% on the S&P 500 index, so we will remain our top pick for the near future to improve our vision,” he added. At the time analysts wrote the notes, Nvidia made up about 8% of the benchmark index.

Evercore repeated its “outperform” ratings on its stock, increasing its price target from $190 per share to $214 per share, meaning an upside of 19% from its current level.

Second quarter

Third Quarter

• Revenue Estimates: $53.46 billion
• Adjusted Total Margin Estimate: 73.4%
• Adjusted operating expenses estimate: $42.6 billion
• Capital expenditure estimate: $1.23 billion

Year 2026

• Revenue Estimated: $20.368 billion
• Capital Expense Estimates: $4.72 billion

Source: Bloomberg