Nvidia Stock Set to Skyrocket After August 27 - Here’s Why

Nvidia's about to launch another moonshot—and Wall Street's scrambling to get positioned before the August 27 catalyst hits.

The Setup

Patterns don't lie. When NVDA gets this kind of momentum pre-event, it typically rips 15-20% within weeks. The charts scream accumulation, with institutional flows hitting levels not seen since the last earnings blowout.

The Catalyst

August 27 isn't just another date—it's when retail finally catches up to what smart money already knows. Either new product announcements or data center numbers will drop, and both scenarios point north. Heavy call buying at strikes 10% above current price tells you everything.

The Reality Check

Let's be real—NVDA's valuation already prices in perfection. But since when did logic ever stop a momentum trade? This isn't investing anymore; it's performance chasing wrapped in AI narrative. Another 20% spike would make it the most expensive stock in human history—but hey, fundamentals are so 2023.

Position or miss out. The algos are already loading.

Image source: Getty Images.

These developments suggest that Nvidia could deliver stronger-than-expected results

When Nvidia released its fiscal Q1 results almost three months ago, the company called for $45 billion in revenue for the recently concluded quarter. That would translate into a 50% jump from the year-ago period. However, management remarked that its guidance "reflects a loss in H20 revenue of approximately $8 billion due to the recent export control limitations."

The H20 is a China-specific artificial intelligence (AI) data center graphics processing unit (GPU) that was developed by Nvidia to remain in line with the export restrictions imposed by the U.S. on shipments of its chips to China. However, the U.S. government told Nvidia in April that it needs a license to ship its H20 chips to China.

As a result, Nvidia lost $2.5 billion worth of sales in fiscal Q1, apart from incurring a $4.5 billion charge owing to the restrictions. The U.S. government has now granted Nvidia the license to export its H20 chips to China on the condition that the company will have to share 15% of its revenue from the sales of this chip with the government.

Given that Nvidia was expecting to sell $8 billion of chips to Chinese customers in fiscal Q2, there is a good chance that it may have been able to recoup some of that lost revenue. As a result, Nvidia's guidance for the current quarter could exceed expectations. Its results for the previous quarter could also be better than expected considering the company started applying for export licenses on July 15, a couple of weeks before the quarter ended.

Of course, there are reports suggesting that Nvidia is facing security-related concerns in China, but investors should note that the shortage of AI-focused GPUs in that market could ensure that the H20 remains in good demand.

Moreover, Nvidia is likely to benefit from the stronger-than-expected investments by major cloud computing companies in the U.S. The likes of,,, andare on track to spend $364 billion in capital expenditures in 2025, up from the earlier estimate of $325 billion.

That WOULD be an increase of 64% from last year, and an acceleration of 5 percentage points from the capex increase witnessed in 2024. This bodes well for Nvidia, given that it has been maintaining its position as the dominant player in the AI chip market, while rivals such as are not gaining enough traction yet.

Specifically, Nvidia controls an estimated 80% of the AI chip market. As such, the higher spending by big tech companies in the U.S., the renewed growth potential in China, and Nvidia's role in the growth of sovereign AI infrastructure can help the company deliver solid results and guidance on Aug. 27.

Is the stock still worth buying?

Nvidia stock has shot up at a parabolic pace in the past four months or so. This explains why it is now trading at 58 times earnings, a big premium to theindex's earnings multiple of 25. Investors, however, should note that the company's bottom line is expected to jump by 47% year over year in fiscal Q2, which is more than 5 times the average increase the S&P 500 companies are expected to deliver.

So, Nvidia is deserving of its rich valuation thanks to its ability to grow its sales and earnings at a much faster pace than the broader market. That's why investors looking to buy a growth stock can still consider accumulating Nvidia before its upcoming report, as the points discussed above suggest it has the potential to fly higher after Aug. 27.