Nvidia reports second-quarter results Wednesday after the market close, with newly won H200 chip orders in China and an awaited update on the Vera Rubin data center server among the report's key topics. Oppenheimer analysts expect upside to the quarter's estimates, see China sales adding more than $50 billion in further upside, and keep an outperform rating with a $265 price target on the stock.
Nvidia heads into second-quarter results, expected Wednesday after the market close, with two topics front and center: newly won orders for its H200 chip in China and an awaited update on Vera Rubin, the data center server succeeding Nvidia's Blackwell processor. Nvidia stock has formed a cup base with a buy point of 236.54 heading into the report. That is an early-stage base, which can net higher returns than later-stage ones do.
The chipmaker has finally received orders for its H200 chip in China, according to the Financial Times, and its China sales outlook stands as a key metric on Wednesday. Investors are also awaiting an update on Vera Rubin, the server succeeding Nvidia's Blackwell processor.
Oppenheimer analysts Rick Schafer and Trevor Bowers expect upside to Nvidia's second-quarter estimates, with the company's outlook for the current quarter calling for strong Blackwell sales and a Vera Rubin production ramp-up expected to lend momentum in the second half of the year. They believe China sales could add more than $50 billion in further upside. Oppenheimer holds an outperform rating with a $265 price target on Nvidia stock.
A slightly out-of-the-money call option on Nvidia with a 217.50 strike price traded at a $6.70 premium while shares stood at 216.57 — 3% of the stock's price, below Investor's Business Daily's 4% threshold for earnings option strategies. The contract, expiring Aug. 28, gives the buyer the right to purchase 100 shares at that strike price. Nvidia stock would need to rise to 224.20 to break even, and the maximum possible loss is $670.
Source: Investor's Business Daily
Trading involves risk.
Risk Disclaimer
