nvidia's next chapter: will china fuel another stock surge?
new york, Monday, 11 August 2025.
goldman sachs updated its nvidia price target, focusing on the upcoming earnings report. nvidia’s guidance and china sales are key factors. analyst james schneider increased the price target to $200, maintaining a buy rating. nvidia could gain $20 billion in revenue and $0.40 in earnings per share by fiscal year 2027 with china sales back on track. nvidia is set to release q2 earnings on august 27, 2025. wall street anticipates earnings per share of $1.00 and revenue of $45.70 billion.
q2 earnings expectations
Nvidia’s Q2 sales guidance is approximately $45 billion, with a margin of plus or minus 2% [1]. Goldman Sachs analyst James Schneider anticipates Q2 revenue of $41.9 billion and Q3 revenue of $51.5 billion [1]. Nvidia’s adjusted gross margin was 71.3%, and the company anticipates margins recovering to the mid-70% range later in the year [1]. Investors are keenly focused on the data center business performance when Nvidia releases its Q2 earnings on August 27 [3]. The chip giant has seen revenue growth in this area through sales of its high-performance AI processors [3].
networking business growth
Nvidia’s networking business is gaining recognition as a key component of its overall success [3]. Nvidia’s networking products include NVLink, InfiniBand, and Ethernet solutions, which facilitate communication between chips and connect servers within large data centers [3]. These technologies are essential for running AI applications [3]. In fiscal Q1 2026, Nvidia’s networking revenue reached $4.9 billion [1]. Gene Munster, Managing Partner at Deepwater Asset Management, notes that Nvidia’s networking business is often underestimated but is experiencing rapid growth [3].
the significance of nvidia’s network
Kevin Deierling, Senior Vice President of Networking at Nvidia, highlights the importance of three types of networks in the age of AI [3]. These include NVLink for connecting GPUs within servers, InfiniBand for connecting server nodes within data centers, and Ethernet for front-end networks [3]. These networks are designed to facilitate rapid communication between devices, which is crucial for efficient data processing [3]. Munster explains that without the networking business, Nvidia’s overall performance would be significantly hindered [3].
competition and market dynamics
While Nvidia currently holds a leading position, competitors such as AMD are actively seeking to gain market share [3]. Cloud computing giants like Amazon, Google, and Microsoft are also developing their own AI chips [3]. Despite increasing competition, Nvidia is expected to maintain its growth trajectory as demand for its chips continues to rise [3]. Citigroup analyst Atif Malik estimates Nvidia holds a 67% share of the aggregate AI accelerator installed base at the four largest US hyperscalers (2021-2024E) [7].
gpu sales and market value
Malik projects substantial gains in Nvidia’s graphics-processing-unit sales, forecasting a 118% increase in 2024 and an additional 84% increase in 2025 [7]. These gains would represent approximately 31% of all capital spending from U.S. cloud providers in 2024 and around 35% in 2025 [7]. Nvidia’s market value has seen significant growth, adding approximately $780 billion since early September 2024 [7]. In October 2024, Nvidia shares traded at $138.22 each, with a market value of $3.39 trillion [7].