BofA: Nvidia's next earnings report could kick off a "multi-quarter upgrade cycle"

Bank of America is increasingly bullish on Nvidia ahead of its August 26 second-quarter earnings report, expecting another beat-and-raise quarter that could start a multi-quarter upgrade cycle. The firm sees revenue of $94 billion-$95 billion, above Nvidia’s $91 billion guidance, and expects management to guide to $107 billion-$108 billion versus the Street’s roughly $104 billion estimate. The optimism is driven by early shipments of the Vera Rubin platform, new Vera CPU ramps, strong cloud capex, and record-high GPU rental prices, which may signal faster adoption of next-gen chips. BofA also argues that rising memory costs should only modestly pressure margins. If the company delivers as expected, the stock could benefit from upgraded estimates and renewed confidence in Nvidia’s AI growth runway and capital return potential.