NVIDIA Corporation is expected to beat earnings estimates for the second quarter of fiscal 2026, with a revenue target of $45 billion (+/-2%). The Zacks Consensus Estimate is $46.03 billion, a 53.2% increase from the previous year. Earnings per share are expected to grow by 47.1% year-over-year.

The company’s earnings have exceeded expectations in three of the last four quarters, with an average surprise of 3.9%. Analysts predict an earnings beat for NVIDIA this quarter, supported by a positive Earnings ESP and a Zacks Rank #1, 2, or 3.

NVIDIA’s second-quarter results are likely to be influenced by the strength of its Data Center, Gaming, Professional Visualization, and Automotive segments. Demand for chips in these markets is expected to drive revenue growth, with a focus on generative AI models and cloud-based solutions.

Shares of NVIDIA have gained 35.3% in the past year, outperforming the Computer and Technology industry. The company’s forward P/E ratio of 34.78X is higher than the sector average, indicating a premium valuation compared to competitors like Intel, AMD, and Marvell Technology.

NVIDIA’s leadership in generative AI chips positions it well to capitalize on the growing demand for AI applications across various industries. The global generative AI market is projected to reach $967.6 billion by 2032, with a CAGR of 39.6% from 2024 to 2032. NVIDIA’s advanced chips are expected to drive revenue growth in this space.

While NVIDIA presents a compelling investment opportunity due to its market dominance and innovative products, its high valuation may lead to short-term volatility. Holding the stock is recommended for now, given its strong position in the semiconductor industry and growth potential in AI applications.

Read more at Nasdaq: NVIDIA Likely to Beat Q2 Earnings Estimate: How to Play the Stock?