Nvidia bulls may have a small problem on their hands

Nvidia bulls may have a small problem on their hands Brian Sozzi · Executive Editor Thu, August 13, 2026 at 4:23 PM GMT+2 2 min read NVDA CSCO If there is any reason to proceed with caution ahead of Nvidia's ( NVDA ) earnings on Aug. 26, it's that the market is positioned for the company to post great results and for CEO Jensen Huang to sound super bullish on the earnings call. This could indeed create a sell-the-news moment, not unlike what has happened to Cisco ( CSCO ) stock on Thursday in response to strong quarterly numbers and a robust outlook.

The stock had run up 65% in the past six months, with gains holding into the company's earnings on Wednesday evening. "We expect a solid quarter [for Nvidia] with meaningful upside to guidance supported by tight GPU supply/demand trends, but think the bar for the stock is elevated given its +12% move in two weeks," Goldman Sachs analyst James Schneider cautioned in a new note. "We believe expectations are elevated given strong demand datapoints, including positive 2026 capex revisions from US hyperscalers and commentary on near-term GPU capacity shortages.

" Nvidia's stock has been quietly gaining steam ahead of its upcoming earnings report. With that rally in the mix, Nvidia stock is only about 5% below the $236. 54 52-week high, per Yahoo Finance AlphaSpace analysis.

The stock's advance comes as Wall Street expects Nvidia to post another blockbuster performance for its second quarter fiscal 2027. Consensus estimates as compiled on Yahoo Finance forecast revenue near $92 billion — a massive ~96% year-over-year jump. The projected surge is overwhelmingly driven by relentless demand from hyperscalers and enterprises for Nvidia's AI data center chips, alongside the ongoing ramp of its next-generation Blackwell hardware architecture.

Earnings per share are modeled to nearly double from last year to $2. 08. Schneider said there is a way Nvidia can sidestep a sell-the-news earnings day.

"Although the stock has lagged peers year to date and trades at a wide discount to our view of fair value (14. 4X our calendar year 2027 estimated EPS), we think it can continue to re-rate if we see evidence of: (1) improving profitability metrics at hyperscalers that support sustained spending growth; (2) measured capital outlays in support of customer financing platforms; (3) reiteration of strong capital returns (buybacks and dividends)," Schneider explained. Brian Sozzi is Yahoo Finance's Executive Editor, host of the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team.

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