When Nvidia posted its Q1 earnings three months ago, the market hailed the results and the stock climbed 3.3% the next day.
This time, the artificial intelligence chipmaker again delivered upbeat numbers, but Wall Street wasn’t impressed.
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For the fiscal second quarter, Nvidia (NVDA) beat estimates on both earnings and revenue and issued guidance ahead of forecasts. Even so, the stock slid in extended trading on Aug. 27 and fell 0.8% the following day.
Nvidia has been one of the biggest beneficiaries of the generative AI boom following the launch of ChatGPT. Its shares surged 171% in 2024, making it one of the top performers of the year. So far in 2025, the stock is up nearly 34%.
Still, the company’s massive size has left investors questioning how much higher the stock can go.
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Nvidia missed estimates on data center revenue
Nvidia’s Q2 earnings were $1.05 per share, beating Wall Street estimates of $1.01. Revenue rose 56% to $46.74 billion, higher than analysts’ forecast of $46.06 billion.
But data center revenue missed estimates for the second straight quarter.
For the current quarter, Nvidia guided revenue to $54 billion, ahead of analysts’ $53.1 billion forecast. The company said the outlook does not include sales of the H20 chip, a reduced-performance GPU designed for China.
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Nvidia warned in May that new export curbs could cost up to $8 billion in quarterly revenue. In August, it struck a deal with the U.S. government to resume sales in China for a 15% fee.
“The opportunity for us to bring Blackwell to the China market is a real possibility,” Nvidia’s CEO Jensen Huang said during the earnings call. “We just have to keep advocating the importance of American tech companies to be able to lead and win the AI race, and help make the American tech stack the global standard.”
Dan Ives has blunt 4-word response on Nvidia stock
Dan Ives, managing director and senior equity research analyst at Wedbush Securities, has shared his latest views on Nvidia stock with TheStreet after the earnings.
“I’m feeling more bullish,” Ives told TheStreet. “Because when you factor even in the China numbers, this is really just the start of an acceleration for Nvidia across the board.”
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While Nvidia’s data center revenue came in below expectations, Ives sees this as a short-term issue.
“It’s just more transitional…when you look at data center over the coming quarters, you’re actually going to see an acceleration,” Ives said, adding that Wall Street still underestimates Nvidia’s growth by 25% to 30%. “These are numbers that make you more bullish, not less.”
Regarding the biggest risk for Nvidia, Ives pointed to geopolitical tensions between the U.S. and China. Still, he thinks “it’s just a matter of time till that gets green-lighted” and expects progress probably within “the next 45 to 60 days.”
“If you look at Jensen, he’s 10% politician, 90% CEO,” Ives said.
In June, Ives had told TheStreet that if he could only buy one tech stock, that would be Palantir. Now, he said it “would have to be Nvidia, because there’s only one chip fueling the AI revolution. And that continues to be the godfather of AI: Jensen, Nvidia.”
With that all being said, Ives has not yet raised the stock price target for Nvidia after the earnings. He now has a target of $210 for the base case and a $250 bull case price target.
Back in June, Ives told TheStreet that if he could only buy one tech stock, it would be Palantir. Now, he says it “would have to be Nvidia, because there’s only one chip fueling the AI revolution. And that continues to be the godfather of AI: Jensen, Nvidia.”
Even with his bullish stance, Ives has not raised his price targets after earnings. He maintains a base case target of $210 and a bull case of $250.
How does Nvidia’s next chapter look?
Nvidia’s market value reached $4 trillion in July, and it was the first company to hit that milestone. Now, Ives expects the chipmaker to push further toward a $5 trillion market cap, likely by early 2026.
“The doubters will continue to be there. But this is really just the next phase of the story,” he said.
More Nvidia:
- Nvidia earnings face high bar on data-center demand, China deal
- Nvidia quietly buys more stock in AI infrastructure favorite
- Soros supercharges Nvidia stake, loads up on AI plays
Ives isn’t bullish just on Nvidia stock. “I think not just for Nvidia, but overall tech.” The next major catalyst for the tech sector, he added, is “clearly going to be U.S.-China.”
As for the outlook, Ives sees more gains ahead. “I think tech stocks are up another 8% to 10% the rest of the year,” he said. “These stocks continue to move higher based on everything…not just earnings but our checks.”
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