Nvidia (NVDA) is set to release its fiscal second-quarter earnings report on Aug. 27. Morningstar highlights key metrics to watch for, including China business updates, supply chain expansion, and investor expectations for a beat-and-raise quarter.

Last quarter saw optimism for AI expansion with large deals in Saudi Arabia and the United Arab Emirates. Nvidia’s supply chain is showing signs of meeting AI demand, with potential growth in the sovereign AI sector.

Investors anticipate insights from Nvidia’s CEO on AI trends and applications. Morningstar’s fair value estimate for Nvidia is $170 per share, based on data center growth and long-term prospects.

Nvidia holds a wide economic moat due to its GPU leadership and proprietary software like Cuda for AI tools. The company’s financial strength is solid, with $53.7 billion in cash and investments and minimal debt.

Risks include high uncertainty in the AI market, competition from tech giants in AI chip development, and geopolitical restrictions affecting sales in China. Bulls cite Nvidia’s industry-leading GPUs and AI dominance, while bears express concerns about competition and geopolitical challenges.

Read more at Morningstar: Going Into Earnings, Is Nvidia Stock a Buy, a Sell, or Fairly Valued?