Nvidia's next wave of chips is starting to show up in Wall Street's projections, and one analyst firm believes the company could be set for a strong second-quarter earnings report when it releases results on August 26.
In a note published Wednesday, Oppenheimer said it expects Nvidia's data center business to grow 15% quarter-over-quarter, driven by the ramp of the Blackwell Ultra platform (also known as GB300). The firm also sees networking revenue jumping 35% quarter-over-quarter, and it still expects a ramp of the Vera Rubin VR200 chip in the company's fiscal third quarter.
What's driving the optimism?
Oppenheimer's view is that the next few quarters for Nvidia will be less about one-off pricing gains and more about plain shipment volume as new hardware comes online. In other words, instead of relying on a single high-priced product to boost revenue, Nvidia is expected to sell more chips across its lineup as customers upgrade to the latest generation.
The Blackwell Ultra is the latest iteration of Nvidia's Blackwell architecture, which is designed for AI training and inference workloads. The Vera Rubin VR200, named after the astronomer, is expected to be the next major platform after Blackwell, and Oppenheimer still sees it ramping in the fiscal third quarter, which runs from August through October.
Networking is a key part of Nvidia's story because AI data centers need high-speed connections between thousands of chips. As customers build out larger clusters, networking gear becomes as important as the processors themselves. A 35% quarter-over-quarter jump in that segment would be a significant acceleration.
Why this matters for investors
Nvidia has been the poster child of the AI boom, with its stock soaring as demand for its GPUs has outstripped supply. But investors are now looking for signs that the growth can continue as competition heats up and as customers become more selective about their spending.
If Oppenheimer's estimates are close to the mark, it would suggest that Nvidia's growth is not just a one-time spike from a single product, but a sustained trend driven by the broader adoption of AI infrastructure. That could reassure investors who worry that the AI trade is getting frothy.
However, it's worth noting that these are just analyst projections, not company guidance. Nvidia's actual results could differ, and the stock has been known to be volatile around earnings. Investors should also keep an eye on any commentary from management about future demand and supply constraints.
What to watch next
Beyond the headline numbers, investors will be listening for updates on the Blackwell Ultra ramp and any early signs of Vera Rubin demand. They'll also want to know whether Nvidia can keep its gross margins high as it ships more volume, and whether it can maintain its lead in the face of competition from AMD and custom chip makers like Google's TPU.
Oppenheimer's note comes as other analysts have also been bullish on Nvidia's prospects. The company's H200 chips still reach China, though Beijing has been steering them to Hong Kong, which could affect the regional mix. But for now, the focus is on the next generation of products.
For everyday investors, the key takeaway is that Nvidia's earnings on August 26 could be a major catalyst for the stock and for the broader tech sector. If the company beats expectations and raises its outlook, it could lift the whole AI trade. If it disappoints, it could trigger a sell-off.
As always, it's important to remember that past performance is not a guarantee of future results, and analyst estimates are just one person's opinion. Do your own research and consider your own risk tolerance before making any investment decisions.
