"Hulk Mode": Jefferies Predicts Nvidia Will Exceed Revenue Forecasts by a Record Margin

Nvidia could go into “Hulk mode” as early as August 26, when it releases its report for the second quarter of fiscal year 2027, according to Seeking Alpha, citing a report from investment bank Jefferies. Jefferies expects the company to report quarterly revenue of $95 billion, compared to a consensus estimate of $92.07 billion.

The company has never exceeded forecasts by this much before. The current record is $2.5 billion, set in the first quarter, when Nvidia reported $81.62 billion in revenue. For the current third quarter, Jefferies forecasts sales of $108 billion—already $4.3 billion above the consensus, notes Seeking Alpha.

Investors will focus on demand data from the largest cloud service providers, according to Reuters. Investments by these companies are driving Nvidia’s rapid growth. If the report shows that its customers are ramping up AI adoption or increasing spending, this will reinforce expectations that the investment cycle is not yet over, the agency notes.

Reuters also cites LSEG's median forecast, based on estimates from 38 analysts. The consensus suggests that Nvidia's revenue growth in the second fiscal quarter accelerated to 95.5% year-over-year, compared with 85% the previous quarter and 56% a year ago.

Jefferies expects that, starting in the third fiscal quarter, Vera Rubin’s cutting-edge AI chips will account for an increasinglylargeshare of revenue. In the second and third fiscal quarter reports, their contribution will still be insignificant, but it will begin to grow rapidly starting in December. While the VR/R200 may account for 12% of AI chip revenue in the third fiscal quarter, that figure is expected to rise to over 40% in the fourth. In the first quarter of 2028, Rubin is expected to generate more revenue than Blackwell—Nvidia’s current generation of AI servers—according to Seeking Alpha’s citation of Jefferies’ forecast.

Jefferies expects the transition to Rubin to be smoother than the rollout of Blackwell. The Vera Rubin-based data center rack will retain its current dimensions. Its modular design—free of cables, hoses, and fans—is expected to reduce computing module assembly time from approximately two hours to five minutes. Jefferies forecasts shipments of more than 13,000 racks by the end of 2026 and over 120,000 in 2027, according to Seeking Alpha.

Jefferies also expects that Rubin will be adopted by all leading AI model developers from the very beginning—which was not the case with Blackwell. As an example, analysts cite the OpenAI and SB Energy project announced on August 17. It involves the creation of large-scale computing infrastructure for OpenAI based on Nvidia’s technology.

Since the beginning of 2026, Nvidia’s stock has risen 16%, while the PHLX Semiconductor Index has risen 62%. Rick Schaefer of Oppenheimer maintained a price target of $265 this week. He noted that the leading chipmaker’s price-to-earnings (P/E) ratio is 16, compared to an average of 30 among its competitors. “The annual refresh cycle allows Nvidia to stay several generations ahead of its competitors. We continue to believe that its stock is a long-term buy,” Barron’s quotes Schaefer as saying.

Reuben Roy of Stifel expects Nvidia to beat market forecasts for quarterly revenue. Stifel's price target of $282 is based on a P/E ratio of 22 using earnings estimates for the next fiscal year, according to Barron's.

According to MarketScreener, on August 20, HSBC raised its price target for Nvidia shares from $325 to $360 per share and maintained its “Buy” rating. RBC reaffirmed the same rating and kept its price target at $300.

Based on option prices, Nvidia’s stock could rise or fall by 5.8% by the end of next week following the earnings report. This implies a potential price movement of $13 in either direction from the closing price on August 20 ($216.85). However, following six of Nvidia’s last eight earnings reports, the actual change in its stock price was smaller than the options had implied, according to Moomoo.

At the same time, there are more bets on an uptrend than on a downtrend. In terms of trading volume, there are 59 put options for every 100 call options, and in terms of the number of open contracts, the ratio is 81. In other words, investors are hedging against a decline but still expect stocks to rise more often than not, notes Moomoo.

Nvidia’s earnings report is important for the entire tech market. The company’s chips play a central role in AI development, which is why Nvidia itself is seen as an indicator of investment in this technology and sentiment within the sector. Following the recent sell-off in tech stocks—which was partly triggered by rising bond yields—Nvidia’s quarterly results will help determine whether interest in AI can continue to support high valuations for tech companies, according to Reuters.

Jefferies views the project with OpenAI and SB Energy as a risk factor for Nvidia. This partnership “significantly alters Nvidia’s balance sheet structure” and could reignite concerns on Wall Street about a “circular financing” bubble, noted analyst Blane Curtis.

This article was AI-translated and verified by a human editor