Nvidia Eyes Perplexity AI as Earnings Approach. How NVDA Stock Investors Should Prepare.

Nvidia Corp. (NVDA) is set to release its earnings report for Q2 fiscal 2027 on August 26. Investors are closely watching CEO Jensen Huang's comments on the company's investments, particularly its stake in AI startup Perplexity AI. Perplexity has seen its annualized revenue grow from $250 million to over $750 million, and Nvidia is in talks to take a stake worth $30 billion, up from $20 billion last year.

Nvidia's GPUs are crucial for generative AI and agentic AI, with its chips powered by thousands of GPUs. The company's next-generation architecture, Vera Rubin, features NVLink chip-to-chip interconnects for efficient memory sharing between GPUs and CPUs. Nvidia's stock has been among the biggest winners on Wall Street in recent years, with an 833% gain over five years.

However, the stock's performance has been more moderate in the last 12 months, with a 15.5% increase. Despite this, the stock is currently trading at a relatively cheap level, with a forward price-to-earnings Non-GAAP ratio of 23.63 times, down from its five-year mean of 42.85 times. Analysts expect Nvidia to report revenue of $91 billion for the quarter, with gross margins of 75%, and analysts are looking for slightly higher consensus estimates of $92.18 billion.

Nvidia's strong performance and reasonable valuation make it an attractive option for investors expecting significant growth.