Nvidia reports second-quarter fiscal 2027 earnings on Aug. 26, with Wall Street forecasting 96% revenue growth for the period. Motley Fool contributor Keithen Drury argues the print could turn around a stock that has lost to the S&P 500 so far in 2026.
Nvidia reports earnings for its second fiscal quarter on Aug. 26, covering the three months that ended in late July. Motley Fool analyst Keithen Drury says the result could be the catalyst that turns around a disappointing year for the stock.
Nvidia trails the market so far in 2026
The chipmaker crushed the broader market in the first half of the year over the past three years, but 2026 has broken that pattern. So far this year, Nvidia has risen only about 2%, while the S&P 500 is up around 7%. Shares recently changed hands at $200.75, up 2.93% on the day.
Demand for Nvidia's chips shows no sign of slowing, however. AI hyperscalers have kept raising their 2026 spending outlooks and hinted that 2027 spending will be even higher, reassuring investors that this year's underperformance isn't a sign the buildout is ending.
Wall Street expects 96% revenue growth
For the quarter, analysts expect 96% revenue growth, and Drury notes Nvidia has a track record of exceeding such estimates. But the bigger swing factor may be guidance: analysts currently model 81% revenue growth for the third quarter, and Drury argues a forecast closer to 90% could send shares higher quickly, since that pace isn't priced in yet.
Valuation still matches the broader market
Despite that growth outlook, Nvidia trades at 21.1 times forward earnings, the same multiple as the S&P 500. Its market cap is close to $4.9 trillion. Drury contends the market is pricing Nvidia as an average performer for now — a view that could shift if hyperscaler spending keeps climbing into the Aug. 26 report.
Source: Fool
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