ORCL

Snowflake SNOW reported second-quarter fiscal 2027 non-GAAP earnings of 62 cents per share, up 77.1% year over year and surpassed the Zacks Consensus Estimate by 37.78%. Revenues of $1.55 billion increased 35.1% and beat the consensus mark by 4.91%. Growth was driven by strength in the core data platform and a meaningful step-up in AI revenue. SNOW’s fiscal second-quarter performance was driven by consumption across its core platform, with product revenues representing the majority of results. Product revenues rose 37% to $1.49 billion and accounted for 96% of total revenues in the fiscal second quarter. Professional services and other revenues were $54.9 million, representing the remaining 4% of revenues and increasing 0.8% year over year.Geographically, the Americas contributed 77% of revenues, while EMEA accounted for 17% and APJ contributed 6%. Management said that product revenue growth accelerated for the third consecutive quarter, supported by the core data platform and AI demand. Snowflake Inc. price-consensus-eps-surprise-chart | Snowflake Inc. Quote CoCo surpassed 9,100 accounts, adding more than 2,000 during the quarter. CoWork expanded to 5,800 accounts, up nearly 11% sequentially. Management said that AI products, including CoCo, CoWork, AI functions and AI Gateway, contributed roughly half of the acceleration in growth.Snowflake launched more than 330 product capabilities to general availability in the first half of fiscal 2027, up 35% year over year. New offerings included Cortex Sense and Cortex AI Gateway, which integrates Natoma to extend AI from insight to action. Customer use cases deployed on the platform increased 89% year over year, while use cases won per account executive rose 43%. Management also said that accounts using CoCo consumed more of the core platform, while gross retention remained relatively flat across recent quarters. SNOW ended the quarter with 14,554 total customers after adding 692 net new customers, a 32% year-over-year increase in net additions. The company added 14 Forbes Global 2000 customers, taking that total to 829.Large-customer momentum remained strong, with 828 customers generating more than $1 million in trailing 12-month product revenues, up 27% year over year. Another 65 customers exceeded $10 million in trailing product revenues. Retention remained a key support for the consumption model. Net revenue retention rate was 126%, reflecting healthy expansion within the existing customer base. Contracted demand also remained solid, with remaining performance obligations (RPO) of $9.00 billion, up 30% year over year. Snowflake expects roughly 54% of RPO to be recognized as revenue over the next 12 months. As of July 31, 43% of customers had at least one stable data-sharing edge, while Marketplace listings reached 4,105, up 21%. The non-GAAP gross margin contracted 120 basis points (bps) year over year to 71.8%. Non-GAAP product gross margin was 74.7%. Non-GAAP sales and marketing expense represented 32% of revenues, down from 34% a year ago, while research and development fell to 20% from 22% and general and administrative expense declined to 5% from 6%.Non-GAAP operating income reached $237.0 million, producing a 15.3% operating margin. The year-ago non-GAAP operating margin was 11.1%. Management attributed the improvement to strong revenue growth and disciplined headcount management. Year to date, Snowflake added 334 employees, including 173 from Observe, compared with 935 additions in the year-ago period. As of July 31, 2026, cash, cash equivalents, and short- and long-term investments were $4.3 billion compared with $4.39 billion as of April 30.In the reported quarter, net cash provided by operating activities was $91.4 million. Free cash flow totaled $83.8 million, while adjusted free cash flow was $92.3 million.For the first six months of fiscal 2027, operating cash flow increased to $334.6 million from $303.3 million a year earlier, while adjusted free cash flow rose to $357.8 million from $274.0 million. For the third quarter of fiscal 2027, Snowflake expects product revenues between $1.588 billion and $1.593 billion, implying 37% to 38% year-over-year growth. The company expects a non-GAAP operating margin of 15.5%.For fiscal 2027, product revenues are projected to be $6.07 billion, representing 36% growth, up from the prior guidance of $5.84 billion and 31% growth. Snowflake also raised its non-GAAP operating margin outlook to 14.5% from 13.5%, expects a 74% non-GAAP product gross margin and reiterated a 23% adjusted free cash flow margin. Snowflake currently carries a Zacks Rank #2 (Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Oracle ORCL, ServiceTitan TTAN and Micron Technology MU. Each stock currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Oracle shares have plunged 25.2% in the year-to-date period. Oracle is set to report first-quarter fiscal 2027 results on Sept. 10.Shares of ServiceTitan have plunged 13.5% year to date. ServiceTitan is set to report second-quarter fiscal 2027 results on Sept. 8.Shares of Micron Technology have rallied 235% year to date. Micron Technology is slated to report fiscal fourth-quarter 2026 results on Sept. 30. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report ServiceTitan Inc. (TTAN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Hewlett Packard Enterprise Company? Here are five stocks we like better. Record Q3 performance: HPE reported revenue of $12.2 billion, up 34% year over year, with a 40% non-GAAP gross margin, $1.11 in non-GAAP EPS and record third-quarter free cash flow of $958 million. AI demand is accelerating, but supply remains a constraint: Orders rose 42% and backlog reached a record level, while AI systems orders climbed more than 30% sequentially. Memory, NAND flash and other component shortages are limiting revenue conversion and are expected to persist into fiscal 2027. HPE raised its outlook: The company increased its fiscal 2026 EPS and free-cash-flow targets and now expects fiscal 2027 revenue growth of 13% to 17%, EPS of $4.40 to $4.60 and free cash flow of at least $5 billion, supported by networking, AI infrastructure, an Oracle collaboration and a new hyperscaler server deal. The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Hewlett Packard Enterprise (NYSE:HPE) reported record fiscal 2026 third-quarter results, citing accelerating demand for AI infrastructure, continued networking momentum and disciplined pricing. The company also raised its fiscal 2026 outlook and updated its fiscal 2027 growth framework as orders outpaced revenue and backlog reached a record level. Revenue for the quarter totaled $12.2 billion, up 34% from a year earlier and above the high end of the company’s guidance range. HPE reported a record non-GAAP gross margin of 40%, non-GAAP operating profit of $2 billion and non-GAAP diluted earnings per share of $1.11. GAAP EPS was $1.06. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? AMD’s Helios Launch Could Create Winners Beyond AMD Stock Free cash flow reached $958 million, HPE’s highest third-quarter result, while operating cash flow was $1.6 billion. Chief Executive Officer Antonio Neri said the company exceeded its financial commitments across revenue, gross margin, operating profit and earnings per share. “AI has become a multi-year growth driver, expanding demand across our HPE portfolio,” Neri said. “Customer demand in the quarter accelerated across both business segments, with orders growing faster than revenues.” → Palo Alto’s Rally Has One Big Problem Ahead of Earnings 5 Tech Stocks Holding Their Ground Through the AI Trade Pullback HPE said normalized order growth was 42% year over year, led by demand for traditional servers, AI systems and networking products. The company said it booked more orders than in any prior quarter, producing a record backlog. However, management said supply constraints continue to limit its ability to convert demand into revenue. Neri cited constraints involving DDR5 and DDR4 memory, NAND flash and other components affected by wafer capacity. HPE is seeking to address the situation through increased purchase commitments, multiyear supplier agreements, alternative product configurations and closer demand planning with customers. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Chief Financial Officer Marie Myers said inventory ended the quarter at $11.8 billion, reflecting higher commodity costs and targeted purchases intended to support rising orders and backlog. HPE’s cash conversion cycle improved by one day sequentially, helped by collections and billing timing, although higher inventory partially offset those gains. Management said supply availability should improve enough to support higher revenue conversion in the fourth quarter, while remaining a constraint into fiscal 2027. Networking revenue was $2.9 billion, up 10% on a normalized basis, while orders increased 36%. Myers said orders grew about 3.5 times faster than revenue, with supply constraints and shipment timing limiting data center networking revenue conversion. Networks for AI orders reached a quarterly record of $700 million and grew by triple digits. Cumulative networks-for-AI orders reached $2.2 billion, surpassing HPE’s previous fiscal 2026 target. The company raised its year-end target for cumulative networks-for-AI orders to between $2.5 billion and $3 billion. Within networking, campus and branch revenue grew 8% on a normalized basis, routing revenue rose 23%, and security revenue increased 12%. Data center networking revenue declined 6% because of supply-constrained shipment timing. Networking operating margin was 22%, in line with HPE’s guidance. HPE also announced an expanded collaboration with Oracle involving routers, switches, software and AI operations capabilities for Oracle’s AI cloud infrastructure build-out. Neri described the deployment as a multiyear, multi-gigawatt opportunity that includes QFX switching products and PTX routing products. The company said a U.S. federal court approved its settlement with the Department of Justice related to the Juniper Networks acquisition in August. Neri said integration and cost-synergy efforts remain ahead of schedule, while Myers reiterated HPE’s target of achieving a $600 million annual run-rate of Juniper-related savings by the end of fiscal 2028. Cloud and AI revenue totaled $9 billion, up 25%, exceeding HPE’s outlook. The segment generated operating profit of more than $1.5 billion and an operating margin of 17%, which increased 460 basis points sequentially. Server revenue rose 35%, driven by higher average selling prices in traditional servers, which offset supply-constrained unit volumes. Management said traditional server orders increased by a strong double-digit percentage year over year. HPE expects unit volumes to strengthen in the fourth quarter as supply becomes more available, though constraints are expected to persist. AI systems orders were $2.4 billion, up more than 30% sequentially, while AI systems revenue was nearly $1.6 billion. HPE expects AI systems revenue to improve sequentially in the fourth quarter as backlog converts to revenue. After the quarter ended, HPE said it received a multibillion-dollar server deal from a hyperscaler customer for internal AI inferencing usage. Neri emphasized that the transaction involves traditional servers for the customer’s own use rather than the type of cloud infrastructure deployments HPE had previously pursued with large hyperscalers. Storage revenue increased 10%, aided by demand for higher-value owned intellectual property and private cloud offerings. Private Cloud AI orders grew by triple digits, while Alletra Storage MP orders and revenue also increased by strong double-digit percentages, according to management. HPE GreenLake customers rose 18% year over year to 52,000. The company also said HPE Financial Services recorded third-quarter highs in financing volumes, residual value and return on equity as customers sought financing options for AI investments. For the fiscal fourth quarter, HPE expects revenue of $13.9 billion to $14.8 billion. It forecast networking revenue growth of 11% to 13% and cloud and AI revenue growth of 60% to 72%. The company expects non-GAAP EPS of $1.20 to $1.30 and GAAP EPS of $1.12 to $1.22. HPE raised its fiscal 2026 non-GAAP EPS outlook to $3.75 to $3.85 and its GAAP EPS outlook to $2.93 to $3.03. It also increased its fiscal-year free-cash-flow target to at least $3.75 billion. For fiscal 2027, HPE now expects consolidated revenue growth of 13% to 17%, networking growth of 14% to 17%, and cloud and AI growth of 14% to 18%. The company forecast EPS of $4.40 to $4.60 and free cash flow of at least $5 billion. Management said the fiscal 2027 framework includes some contribution from the Oracle collaboration and the recently announced hyperscaler inferencing deal. It does not include potential revenue from the AMD Helios opportunity, which HPE expects to become available for ordering later in the calendar year. HPE returned $324 million to common shareholders during the quarter through $189 million in dividends and $135 million in share repurchases. The company said it exited the quarter with net leverage of 1.8 times, below its target of two times, and plans to return at least 75% of free cash flow to shareholders in the fourth quarter. Hewlett Packard Enterprise (HPE) is an enterprise technology company that designs, develops and sells IT infrastructure, software and services for business and government customers. Its core offerings span servers, storage, networking, and related software, together with consulting, integration and support services aimed at modernizing and managing enterprise IT environments. HPE's product portfolio includes systems for traditional data centers as well as solutions for high-performance computing, edge computing and telecommunications infrastructure. A major focus for HPE is hybrid cloud and consumption-based IT. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Hewlett Packard Enterprise Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Snowflake SNOW is set to release second-quarter fiscal 2027 results on Sept. 2.The Zacks Consensus Estimate for second-quarter fiscal 2027 earnings has remained steady at 45 cents per share over the past 30 days, indicating a 28.57% year-over-year increase. The consensus mark for second-quarter revenues is pegged at $1.47 billion, indicating a 28.77% increase from the year-ago quarter’s reported figure.SNOW’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, with the average earnings surprise being 21.98%. Let’s see how things have shaped up for SNOW prior to this announcement: Snowflake Inc. price-eps-surprise | Snowflake Inc. Quote Snowflake’s fiscal second-quarter performance is expected to have reflected an expanding clientele, driven by strong AI capabilities, particularly Snowflake Intelligence and Cortex Code (CoCo) and a rich partner base. SNOW continues to benefit from strong adoption and increasing usage of its platform, as reflected by the net revenue retention rate of 126% in the first quarter of fiscal 2027.  In the same quarter, Snowflake reported 13,912 total customers and added 616 net new customers, up 38% year over year, including 13 new Forbes Global 2000 customers. The company now has 779 customers spending more than $1 million annually, up 29% year over year, and the number of customers spending more than $10 million annually increased to 64. This trend is expected to have continued in the to-be-reported quarter as well.Expanding clientele is expected to have benefited the top-line growth. For the fiscal second quarter, Snowflake expects product revenues between $1.415 billion and $1.42 billion, representing approximately 30% year-over-year growth. The Zacks Consensus Estimate for fiscal second-quarter 2027 product revenues is pegged at $1.41 billion, indicating 29.97% growth from the figure reported in the year-ago quarter.The Zacks Consensus Estimate for customers with trailing 12-month product revenues greater than $1 million is currently pegged at 818, indicating a 25.07% increase from the year-ago quarter. The consensus mark for total customers is pegged at 14,399, indicating an increase of 437 net new customers in the to-be-reported quarter.However, Snowflake suffers from the variability of consumption as customers optimize spend and AI products that carry lower gross margins than the core platform. Integration and hiring tied to acquisitions also weigh on free cash flow margins, keeping risk and reward balanced until AI monetization and margin offsets prove durable. Stiff competition also remains a concern. Snowflake shares have surged 49.5% in the year-to-date period compared with the Zacks Computer & Technology sector’s increase of 17.1%. The company’s shares have outperformed the Zacks Internet Software industry’s decline of 0.4% over the same time frame.The company’s shares have also outperformed its peers like Oracle ORCL, Alphabet GOOGL and Amazon AMZN, which are also expanding their footprint in the AI space. While Oracle shares have plunged 22.6%, Alphabet and Amazon shares have rallied 15.4% and 10.7%, respectively, in the year-to-date period. Image Source: Zacks Investment Research Snowflake stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.In terms of forward 12-month Price/Sales, SNOW is trading at 16.32X, higher than the Internet Software industry’s 4.08X, Oracle’s 4.36X, Alphabet’s 8.39X, and Amazon’s 3.16X. Image Source: Zacks Investment Research SNOW is benefiting from the accelerating adoption of enterprise AI, which is fundamentally reshaping how organizations operate and innovate. The company’s strong focus on AI security and governance, which is rapidly becoming a key differentiator in the enterprise AI landscape, has been noteworthy.Snowflake’s AI products, which include Snowflake Intelligence and CoCo, are seeing rapid adoption, with CoCo already in use by more than 7,100 accounts. These products allow both business users and developers to interact with enterprise data and build AI-powered applications directly within Snowflake, all while maintaining strict governance. With the intended acquisition of Natoma, Snowflake is extending its agentic control plane to everyday business applications, enabling users to perform tasks like sending emails or summarizing Slack conversations within a governed environment.Further strengthening this AI strategy, in August 2026, Snowflake announced dynamic model routing across Cortex AI Gateway and its flagship AI products, enabling enterprises to balance AI quality and costs by automatically selecting the most suitable model for each task. The company also expanded access to leading open models, strengthening its AI capabilities and helping customers improve the efficiency of their intelligence. Snowflake’s strong enterprise AI momentum, expanding customer base and solid product revenue growth prospects position it well for continued growth. Despite its stretched valuation, margin pressures and intense competition, SNOW’s strengthening AI portfolio and rising platform adoption make the stock an attractive buy ahead of its second quarter 2026 earnings release.SNOW stock currently carries a Zacks Rank #2 (Buy), which implies that investors should start accumulating the stock right now. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Germany’s Ifo index has reached a one year high, which hints at a more confident backdrop for companies planning to grow earnings rather than just defend margins. That creates an interesting setting for investors looking for earnings momentum combined with balance sheet discipline. This article examines three stocks from the Healthy high growth potential screener and explains why this blend of growth and financial strength may be appealing at this point. The stocks covered below are only a first sample from this idea. The full screen surfaced 283 more companies with similarly strong growth expectations and balance sheet profiles that are not covered here. To go straight to the source, use the Healthy high growth potential screener to identify, analyze, and prioritize the highest conviction opportunities that fit your own criteria. Overview: Amylyx Pharmaceuticals is a clinical stage drug developer focused on treatments for rare endocrine and neurodegenerative diseases, with its Healthy high growth potential link coming from late stage programs like AMX0035 and avexitide that could move it from research focused spending to a commercial footing. The company is advancing a pipeline that includes AMX0035 for conditions such as Wolfram syndrome and progressive supranuclear palsy, as well as avexitide and other GLP 1 receptor antagonists for post bariatric hypoglycemia and related rare disorders. Market Cap: US$4.3b Investors looking at Amylyx Pharmaceuticals are getting exposure to a company whose growth story hinges on late stage trial assets that sit squarely in the Healthy high growth potential theme. The recent Phase 3 LUCIDITY success for avexitide in post bariatric hypoglycemia, with a reported 55% reduction in serious hypoglycemic events and a planned NDA filing by the end of 2026, provides a clearer line of sight to potential first commercial revenues. At the same time, Amylyx is still loss making, relies on external funding and has issued new equity to support commercialization and research, so dilution and execution risk are important considerations. The broader pipeline around AMX0035 and AMX0114 adds additional programs that could matter for earnings quality and durability depending on how future developments unfold. Amylyx Pharmaceuticals looks like a rare mix of high potential trial assets and real balance sheet questions that many investors may be glossing over. Before you lean into the story, review the 2 key rewards and 4 important warning signs (2 are major!) Overview: Oracle is a global enterprise software company best known for its cloud based applications and databases, with Oracle Fusion Cloud ERP, HCM, SCM and industry suites like NetSuite and Oracle Health giving it a strong link to the Healthy high growth potential theme as customers move from on premise software to subscription cloud services. Operations: Oracle generates the bulk of its revenue from Cloud and software at about US$58.5b, with smaller contributions from Services at about US$5.7b and Hardware at about US$3.1b. Market Cap: US$410.3b Oracle gives you exposure to two connected growth stories. Its cloud SaaS businesses in ERP, HCM and healthcare applications are central to analysts’ expectations for strong earnings and revenue growth over the next few years, and its AI ready Oracle Cloud Infrastructure and huge contracted backlog add another layer of potential. At the same time, this is a heavily leveraged balance sheet that leans on debt and planned capital raises to fund AI data centers, while free cash flow coverage of the dividend looks thin. For investors willing to accept execution and financing risk, the mix of high margin software, large AI contracts and a valuation that screens as attractive versus peers can be a compelling combination. Oracle’s accelerating cloud story can be easy to focus on, while the real swing factor may be hiding in how future cash flows match up with its debt load and dividend promises. Get the Oracle financial health report Overview: Iovance Biotherapeutics is a commercial stage biotech company focused on autologous tumor infiltrating lymphocyte cell therapies, led by Amtagvi for advanced melanoma and a late stage TIL pipeline that targets multiple solid tumors such as lung, cervical and endometrial cancers. This TIL platform is the clearest link to the Healthy high growth potential screener, as success in these indications is central to the company’s path to stronger earnings over the coming years. Operations: Iovance Biotherapeutics currently generates about US$325 million in revenue, all from its autologous TIL therapy business, with roughly US$321 million from the United States and about US$4 million from the rest of the world. Market Cap: US$3.7b Iovance Biotherapeutics gives you direct exposure to a commercial TIL therapy platform that already includes Amtagvi for advanced melanoma and a growing late stage pipeline. Analysts link this to rapid earnings growth and an expected move into profitability within 3 years. Recent quarters have highlighted strong Amtagvi driven revenue, improving margins and a fast expanding Authorized Treatment Center network, while analysts continue to raise targets as management reaffirms 2026 revenue guidance of US$350 to US$370 million. At the same time, the company still reports losses, relies on higher risk external funding and has diluted shareholders, so execution and financing risk remain central. For investors comfortable with biotech volatility, that mix of commercial traction, pipeline breadth and valuation sensitivity can be a compelling but high stakes proposition. Accelerating Amtagvi sales and a widening TIL pipeline make Iovance Biotherapeutics appear to be more than a high risk biotech swing. Get the full growth picture in the analyst forecasts for Iovance Biotherapeutics Fresh stock ideas can move from quiet to flying in a hurry. Use these curated screens before momentum gets fully caught by the crowd. Act now. Spot companies with steady fundamentals and low risk scores by running the 74 resilient stocks with low risk scores while they are still under the radar for now. Capture income opportunities that aim for durability by scanning the market with the 12 dividend fortresses before yields drop and attention surges. Explore potential moves in digital finance by checking the curated 20 cryptocurrency and blockchain stocks while the theme is still developing. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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AI developers are constantly demanding more power, fueling the AI boom, which bodes well for Nvidia. Nvidia (NVDA) is becoming more vertically integrated, taking interests in companies that help secure power for data centers, whether from the grid or independent power sources. It is also reportedly in advanced talks to acquire an interest in Cloverleaf Infrastructure, a company that arranges power for data centers. Nvidia also took an equity interest in SoftBank’s SB Energy, which was a deal tied to a megacampus in Ohio that OpenAI leased for 20 years. Additionally, Nvidia made a $2 billion investment in Lancium, the power developer behind a campus in Abilene, Texas, where OpenAI rents computing capacity from Oracle. Also Read: Goldman Sachs spots huge twist ahead of Nvidia’s earnings Nvidia is clearly becoming more vertically integrated in data center development, which should ensure its market dominance for 20+ years, especially since many data centers operate under 20-year leases. Expectations are certainly high heading into NVIDIA’s announcement on August 26. Analysts expect NVIDIA to nearly double its earnings and revenue from a year ago. So, I’ll be paying close attention to what CEO Jensen Huang has to say about AI demand and what he sees coming down the pipeline. NVIDIA’s results could push S&P 500 earnings growth above 50% for the quarter. That’s simply stunning and shows just how strong this earnings season has been. Related: Louis Navellier sets eye-opening Nvidia stock price target for rest of this year My stock grading system rates NVIDIA as a C. That may seem like a low grade given everything I’ve just said. Remember, these rankings are weighted 70% on their quantitative score and 30% on their fundamental score. On the fundamental side, note the low marks for earnings surprises and earnings momentum. While the reports are good, NVDA has hit an inflection point where the rate of increase is decreasing. On the quantitative side, institutional buying pressure has waned. These are shorter-term trends. Long-term, my forecast is that NVDA will be trading at $500 by the end of the decade. For more information about my stock grading system, click here. On August 26, we’ll also get the July Personal Consumption Expenditures (PCE) report, which is the Fed’s preferred inflation gauge. Economists expect headline PCE to rise 0.1% in July and 3.6% over the past 12 months. That would be down slightly from a 3.7% annual pace in June. Core PCE, which excludes food and energy, is expected to rise 0.2% for the month and 3.3% year-over-year. After the encouraging recent Consumer Price Index and Producer Price Index reports, we want to see inflation continue to behave. Another favorable reading would be good news for stocks, especially with the Fed’s September meeting right around the corner. And speaking of the Fed, its annual Jackson Hole symposium kicks off August 27. The big news will be what Fed Chair Kevin Warsh has to say. I’m anticipating that he’ll talk about the productivity gains we’re seeing from artificial intelligence and why those gains are not inflationary. We’ll see. But with inflation and interest rates still front and center, you can bet Wall Street will be listening closely. So, between NVIDIA, inflation, and the Fed, there is plenty that could move stocks this week. Related: Nvidia just sent a huge signal to investors ahead of earnings This story was originally published by TheStreet on Aug 25, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

This article first appeared on GuruFocus. Nvidia (NASDAQ:NVDA) is reportedly preparing price increases of more than 15% on many AI servers using its chips as soaring memory costs collide with relentless data-center demand. The move highlights Nvidia's extraordinary pricing power ahead of Wednesday's earnings, but it also puts a new investor question into focus: whether rising component costs can be passed through without slowing hyperscaler AI spending or squeezing Nvidia's industry-leading margins. Warning! GuruFocus has detected 4 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator. Some of Nvidia's largest customers have been told that systems containing Grace Blackwell and next-generation Vera Rubin chips will become more expensive when shipments begin early next year, Bloomberg reported. The increases will vary depending on the chip generation and memory configuration. Contract manufacturers supplying Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL) and Oracle (NYSE:ORCL) have already notified customers of the increases, according to the report. Memory is the pressure point. AI servers require enormous amounts of high-bandwidth memory and conventional DRAM, while suppliers including Micron (NASDAQ:MU), Samsung and SK Hynix have struggled to expand capacity fast enough to match AI demand. That creates an unusual setup for Nvidia. Higher memory prices raise the cost of delivering complete AI systems, but the company's ability to push those increases downstream also indicates customers remain willing to pay heavily for scarce computing capacity. The stakes are significant. Nvidia generated $81.6 billion of revenue last quarter, up 85% year over year, with Data Center revenue surging 92% to $75.2 billion. Non-GAAP gross margin stood at 75%. Nvidia guided fiscal second-quarter revenue to roughly $91 billion and another 75% non-GAAP gross margin. Wednesday's fiscal second-quarter earnings will provide the clearest test. Nvidia reports Aug. 26 after the market closes. Investors should focus closely on gross-margin guidance, Vera Rubin demand, supply availability and any commentary on memory inflation. If Nvidia can preserve margins while passing higher costs to customers, the price increases would reinforce its pricing-power thesis. The risk is demand elasticity. Microsoft, Amazon (NASDAQ:AMZN), Alphabet and Meta (NASDAQ:META) are all developing proprietary accelerators. If rapidly rising Nvidia system costs accelerate those alternatives or force customers to moderate deployments, today's pricing strength could eventually become a headwind.

Nvidia risks a 20% drop to $165 if it misses earnings, with virtually no margin for error built into its current stock price. Customers Microsoft and Meta are building competing AI chips, threatening the near-monopoly behind Nvidia's $91 billion quarterly revenue forecast. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today. How low can a stock go if it misses earnings? Well, look at its 52-week low. If that happens to Nvidia (NASDAQ: NVDA), the stock would drop 20% to $165, where it was in late March. That was when AI suddenly fell out of vogue amid worries it wasn't the greatest invention of all time. Oracle(NYSE: ORCL) missed earnings, dropping more than half, but it is considered the weakest of the large tech companies. IBM (NYSE: IBM) fell 20% on a miss, but it is a third-tier company. Before Meta (NASDAQ: META) posted poor results, it fell 20% and is down over 25% for the year. More broadly, the big question is when investors will sell off the AI sector. Many market experts say it is inevitable. The stocks of the core companies that lead the sector have risen too far too fast. Nvidia said to expect revenue of $91 billion for the quarter it will report this week. The assumption today is that, as nearly the only game in town for high-end AI chips, the tide of demand will drive it higher, no matter what. Even if the company hits the $91 billion mark, much of the focus will be on the guidance for the current quarter. Nvidia’s forecast numbers are very exact. Usually it says its forecast will be within a range of 2% up or down from its forecast number. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today. What sinks Nvidia’s boat? At the top of the list is slowing data center growth, which could be driven by protests that have slowed construction. The Information puts that figure at 500 today, and probably growing. But what should worry investors more is the jump in corporate statements questioning products from the biggest AI players. Some of these customer companies have throttled back their investments. And Nvidia’s own customers have started to compete against it. Yahoo recently reported, “The list of companies creating technologies that could reduce the industry's reliance on Nvidia might be longer than a shopping list for making a traditional mole poblano.” Among these were Microsoft (NASDAQ: MSFT) and Meta. Nvidia's upcoming earnings will show whether it has reached the point of even a single weakness. Its stock trades as if it has not. This makes the margin of error on its numbers very, very small. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

Nvidia NVDA will step back into the earnings spotlight after the market closes on Wednesday, August 26, when the AI chip leader reports its much-anticipated Q2 results. Expectations are understandably elevated, but the setup looks increasingly interesting as Nvidia’s valuation has compressed despite extraordinary earnings growth. Beyond another potential top-and-bottom-line beat, Wall Street will be focused on the Vera Rubin product ramp, gross margins, and Nvidia’s growing role in financing the massive buildout of AI infrastructure. Investors are certainly wondering if NVDA can gain momentum with shares up a somewhat subpar 12% year to date despite sitting on enormous gains of +800% in the last five years. Image Source: Zacks Investment Research The Zacks Consensus Estimate calls for Nvidia to post Q2 revenue of $91.85 billion, representing a whopping 96% increase from $46.74 billion in the year-ago period. Adjusted earnings are projected at $2.09 per share, up 99% year over year. Those projections are essentially in line with Nvidia's own guidance for $91 billion in revenue, plus or minus 2%, which notably assumes no Data Center compute revenue from China. Data Center sales remain the primary growth engine, with the Zacks Consensus calling for roughly $85.14 billion, or 107% YoY growth. Perhaps more important than the headline Q2 numbers will be Nvidia's commentary surrounding its next-generation Vera Rubin platform, the company’s latest rack-scale AI supercomputer architecture designed to power the next era of agentic AI — systems that can reason, plan, and execute multi-step workflows at massive scale. Nvidia announced in May that Vera Rubin was ramping into full production, with production shipments slated to begin this fall. More recently, the company said Rubin-based racks are already running at partners including CoreWeave CRWV), Alphabet’s GOOGL) Google Cloud, Microsoft’s MSFT) Azure, Oracle ORCL) Cloud Infrastructure, and Nebius NBIS). Therefore, investors shouldn't necessarily expect Rubin to be a major Q2 revenue contributor. Instead, Wall Street will be looking for evidence that production remains on schedule, customer deployments are accelerating, and Rubin can provide another powerful growth leg as Nvidia's Blackwell series of AI chips matures. Any indication that Rubin is pulling forward orders could strengthen expectations for the second half of Nvidia's current fiscal 2027 and FY28. Nvidia's profitability will also be closely scrutinized. Management guided for a 75% non-GAAP gross margin, plus or minus 50 basis points, essentially matching the 75% achieved during Q1. That stability is important as investors assess higher memory and component costs associated with increasingly sophisticated AI systems. Some analysts expect modest pressure during the Rubin transition, but maintaining gross margins in the mid-70% range would reinforce Nvidia's enormous pricing power and help alleviate concerns that escalating hardware costs are eating into profitability. Image Source: Zacks Investment Research Another emerging concern is Nvidia's increasingly aggressive effort to help finance the infrastructure that ultimately purchases its chips. Most notably, Nvidia has provided up to roughly $105 billion of financial backing tied to an OpenAI data-center project in Ohio and is investing another $1.5 billion in SB Energy to support those efforts. Importantly, the $105 billion figure is a contingent backstop involving certain lease, power, and residual-value obligations rather than an immediate $105 billion cash expenditure. Nvidia has also teamed with major Wall Street firms on a framework intended to mobilize more than $500 billion of third-party capital for AI infrastructure, which could shift more of the financing burden away from Nvidia itself. Still, investors have reason to monitor the exposure, even with Nvidia ending Q1 with nearly $80.6 billion in cash and equivalents, while generating an exceptional $50.3 billion of operating cash flow during the quarter. The balance sheet remains extremely strong, but Wall Street will want greater clarity on how much capital Nvidia ultimately intends to put behind customers and AI infrastructure projects, especially if these commitments keep expanding. Image Source: Zacks Investment Research Despite Nvidia's massive market capitalization, its valuation no longer looks particularly excessive relative to its growth rate. NVDA is trading at 24X forward earnings, near the low end of its five-year P/E valuation range. Furthermore, Nvidia’s PEG ratio is around 0.34 with the optimum level being less than 1.0, meaning investors are paying less than one unit of P/E multiple for each unit of expected earnings growth—a metric that can make Nvidia look surprisingly inexpensive on a growth-adjusted basis. This valuation disconnect has caught Wall Street's attention. Bank of America BAC) has argued that Nvidia is significantly undervalued compared with other AI-compute names, while Cantor Fitzgerald has similarly suggested the market is failing to fully price in Nvidia's longer-term earnings power. Of course, PEG ratios become less useful when growth rates are exceptionally high, but Nvidia's combination of nearly triple-digit Q2 earnings growth and a mid-20s forward P/E certainly makes its valuation harder to characterize as expensive. Image Source: Zacks Investment Research Nvidia still has plenty to prove when it reports Wednesday. Investors will want another strong quarter, an encouraging Vera Rubin ramp, resilient gross margins, and reassurance that the company's expanding AI-financing ambitions won't create unnecessary balance-sheet risk. That said, a 24X forward P/E looks increasingly compelling if Nvidia can sustain even a fraction of its current earnings growth rate. The long-term AI investment thesis remains strong, although elevated expectations could produce significant post-earnings volatility even if results exceed consensus estimates. For now, NVDA lands a Zacks Rank #3 (Hold), suggesting investors may want to maintain existing positions while looking for Wednesday's report to provide the next catalyst for a more bullish stance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Bank of America Corporation (BAC) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Nebius Group N.V. (NBIS) : Free Stock Analysis Report CoreWeave Inc. (CRWV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research