Nvidia share price rallied over a percent on Tuesday, ahead of the announcement of its quarterly results. Nvidia share price ended 1.08% higher at $181.77 apiece on August 26, as investors await whether the artificial intelligence (AI) giant will deliver its promised returns, which could therefore potentially impact the US tech sector.
Nvidia is the world’s most valuable company, with a market cap of $4.4 trillion, representing 8% of the S&P 500, the largest share for any single stock in the index’s history. Nvidia’s market cap is double than the entire value of Germany’s benchmark DAX.
Nvidia share price has rallied over 38% in the past six months, and 35% on a year-to-date (YTD) basis. This outpaces the benchmark S&P 500 Index’s near 10% YTD rise. The AI stock has jumped 44% in one year, and has delivered a staggering 1,282% returns over the past five years.
The AI leader will announce its earnings for the second quarter ending July 2025 on Wednesday, August 27. Here’s what to expect from Nvidia Q2 results:
Nvidia Q2 Results Preview
Nvidia is expected to report a 53.2% increase in revenue to $46.02 billion, higher than the company’s own guidance three months ago, according to LSEG data. For the third quarter, analysts expect Nvidia to guide to revenue of $52.96 billion, up 51% year-on-year (YoY).
The company’s adjusted gross margin is expected to drop nearly 4 percentage points to 72.1% in Q2. In the October quarter, gross margin is expected to contract by nearly two points to 73.2%, Reuters reported.
Commentary on demand from Nvidia CEO Jensen Huang will be eyed, and any positive statement could boost AI stocks that have sold off recently on worries that investors may be valuing them too highly.
Nvidia China Business
Nvidia’s business in China will be in focus after the company’s deal with the Trump administration and Beijing’s subsequent efforts to stall imports amid the US-China trade war.
The AI chip pioneer recently agreed to pay the US federal government 15% of the sales it made in China in exchange for export licenses. Moreover, Beijing has urged domestic companies to limit purchases over apparent security concerns, Reuters reported.
China contributed 13% to Nvidia’s revenue last year. For the quarter ended July 2025, many analysts did not include any revenue from H20 sales in China, as US approval came late in the period and Beijing’s resistance has made forecasts for the year more uncertain.
In May, Nvidia said US restrictions would reduce its July-quarter sales by $8 billion. These curbs had already resulted in a $4.5 billion charge in the previous quarter.
Analysts now expect Nvidia to face a 5–15 percentage point hit to gross margins on chips sold to China under the federal deal. This could reduce Nvidia’s overall margins by about one percentage point.
(With inputs from Reuters)
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