Next week, NVIDIA will release "the most important technology financial report in recent years", can it debunk the "AI bubble theory"?

After the market closed on August 28th Eastern Time, NVIDIA is about to announce its performance for the second quarter of the 2025 fiscal year.

According to analysts surveyed by FactSet, NVIDIA's second-quarter revenue is expected to reach $28.7 billion, a year-on-year increase of 112%. Analyst expectations compiled by Visible Alpha show that NVIDIA's revenue for this quarter is expected to increase to $28.84 billion; net income is expected to more than double from the same period last year, reaching $14.95 billion.

In the first quarter of the 2025 fiscal year, NVIDIA's data center revenue reached $22.6 billion, analysts expect data center business revenue in the second quarter to reach $25.19 billion, setting a new record, with sales more than doubling from the same period last year.

Wedbush analyst Dan Ives is one of the most influential tech bulls on Wall Street. In a recent report, he referred to NVIDIA's upcoming earnings report as "the most important tech earnings report in recent years" - "We believe that next week will be the most important week for the stock market this year, and possibly the most important week on Wall Street in years."

Prior to this, every earnings report released by NVIDIA during this AI boom has pushed its stock price to new highs. This time, Ives also gave similarly optimistic expectations, "Our focus is on the development of artificial intelligence and the tech winners of the Fourth Industrial Revolution... The momentum for tech stocks is ready," he predicts that NVIDIA will achieve another record next week.

He is not the only one providing positive outlooks.

Goldman Sachs analyst Toshiya Hari also has optimistic expectations for NVIDIA's earnings report this week. The report points out that NVIDIA will continue to maintain a strong position in AI and accelerated computing.

Hari believes that demand for AI infrastructure such as GPUs will remain strong. There have been some optimistic signals in the industry recently, such as TSMC's HPC business accounting for more than half of total revenue in the second quarter for the first time, and AMD once again raising its full-year revenue forecast for AI accelerators. Additionally, NVIDIA has a large customer base. Although there were reports of delays in the shipment of the Blackwell series GPUs, Hari believes the impact is minimal.

Analysts from Raymond James, KeyBanc, and other companies recently stated that despite reports of delays in the release of Blackwell chips, they still believe NVIDIA will deliver a strong earnings report.

Over 95% of analysts tracked by Visible Alpha have a "buy" rating on the stock, with a consensus target price of $144.83 - still nearly 12% higher than NVIDIA's latest closing price. On August 23rd Eastern Time, NVIDIA closed up 4.55%, with the latest stock price at $129.37, rebounding over 20% since August 5th.

While many analysts have given optimistic expectations recently, it is undeniable that the doubts about "investing in AI is a bubble with difficult returns to meet expectations" are still hard to dispel.

Barclays analysts also warned that NVIDIA's financial report may be a "real test" for the overall market, especially the technology sector. If NVIDIA's latest financial performance fails to exceed expectations again and raise profit forecasts, it may disappoint investors, thereby having a more widespread impact on the entire market.

As the head of NVIDIA, Jensen Huang has sold off NVIDIA at high levels multiple times. It is estimated that he has cashed out at least $578 million between June and August. Some American media outlets have joked that the fate of the next tech bull market may lie in Jensen Huang's hands. Let's wait and see what kind of performance NVIDIA can deliver next week