Dear Nvidia Stock Fans, Mark Your Calendars for August 26

Perhaps the most important stock in the entire market, given its importance to the artificial intelligence (AI) revolution, Nvidia's (NVDA) results are a quarterly thing to behold.

That's not because there's really any chance Nvidia misses its numbers. This is a company investors have become pretty darn comfortable in projecting a beat and raise every time.

That's certainly the case with this upcoming earnings report slated for Aug. 26, when Nvidia is expected to post blowout numbers. After Nvidia's CEO Jensen Huang more than doubled his guidance for revenue to breach $1 trillion annually in 2027, investors are taking this guidance as meaning some massive quarters are ahead. That's partly what's behind Nvidia's one-month return of nearly 9% at the time of writing.

I think this report could provide some serious upside or downside for investors, depending on how the company can meet whisper numbers on Wall Street. Let's dive into what could be forthcoming and where analysts stand on this stock heading into this important print. 

Here's What's Expected

Nvidia is expected to report a little more than $91 billion in revenue for the July quarter, supported by “insane demand” (Jensen Huang's words, not mine) for Blackwell and other AI chip platforms. The world's largest semiconductor maker has seen impressive momentum when it comes to its Rubin shipments, and with memory and chip costs on the rise, these factors should undoubtedly lead to some solid growth in the near term. 

I think the aforementioned $1 trillion forecast through 2027 is what most investors will be paying closest attention to. That forecast implies some serious growth acceleration on the horizon. 

But perhaps most importantly, many investors will be keying in on whether Nvidia can maintain its sky-high margins as it searches for ever-faster growth. After all, there are competitors in this space, and it isn't a one-horse race.

I think looking at Nvidia's ratios above that this is a stock with plenty of room to expand its top line and market share. A gross margin of more than 55% coupled with a return on equity of nearly 97% (you read that right) is incredible. Tack on top of this reality that Nvidia is trading at only 25 times forward earnings (which could actually be lower if Huang's predictions about future growth are correct), and you get a company that actually looks cheap here. 

Of course, the better the earnings report on Aug. 26, the higher the bar will be for coming quarters. For now at least, Nvidia's management team doesn't seem to feel the need to sandbag anything. In fact, raising the bar is par for the course and something many investors have clearly begun to bake in over the course of the past month.

Wall Street Analysts Seem to Agree

What's interesting about Nvidia is that Wall Street analysts have generally been behind the curve on this company over the course of the past decade. Indeed, even the most bullish analysts out there haven't seemed to be able to comprehend the speed at which the AI revolution would unfold and what the sort of circular financing deals Nvidia and others in this space have put forward have meant for the company.

With a consensus price target of $304.32 on NVDA stock at the time of writing, there's some serious upside being baked in by the Street (more than 38%). Now, the type of growth acceleration the Nvidia team is touting could mean that the high target on the street of $500 per share could be closer to where this stock eventually heads.

Now trading at a valuation of roughly $5.5 trillion, that would mean we'd have our first $10 trillion company on our hands if this level is met. The thing is, betting against Nvidia over the long term has been a losing proposition.

At this point, I have no idea where NVDA stock is headed over the next five years. But considering the company's past performance, forward guidance, and its ability to shock market participants quarter after quarter, I wouldn't be surprised if the market isn't dead on in buying this stock heading into this print.