Nvidia stock could soar after August 28 and Google could be the reason

There’s reason to believe that Nvidia Corp (NASDAQ: NVDA) will extend its gains in the coming months even though it’s already up some 30% versus its August low.

Part of it may be related to a positive comment that Sundar Pichai – the chief executive of Google made on the company’s latest earnings call.

Pichai recently told investors that the “risk of under-investing in [AI infrastructure] is dramatically greater than the risk of over-investing for us.”

That bodes well for Nvidia stock considering it makes the most sophisticated chips, which power all things artificial intelligence.

Nvidia could offer upbeat guidance on August 28

It may not be too late to invest in Nvidia shares as the importance of investing aggressively in AI infrastructure is not lost on other tech titans, including Meta Platforms, Microsoft, and Amazon.

All three indicated plans of increasing capital expenditures to strengthen their footing in artificial intelligence during their recent earnings call.

Upbeat commentary on AI from these huge names may prove to be adequate for NVDA management to offer stellar guidance for the future on August 28.

Its impressive guidance will likely fix the recent gloom surrounding demand for the company’s GPUs and, therefore, may unlock the next leg up in Nvidia stock.

Can Nvidia beat Street estimates in its fiscal Q2?

Nvidia's share price may still be attractive despite recent gains also because the Nasdaq-listed firm received a huge compliment from the chief executive of Tesla Inc – Elon Musk, on July 23^rd.

“I’m incredibly impressed by Nvidia’s execution and the capability of their hardware. What we’re seeing is that the demand for Nvidia hardware is so high that it’s often too difficult to get the GPUs.”

Considering the billionaire’s remark, it’s conceivable that Nvidia will come in handily above Street estimates for its second quarter on August 28.

The consensus is for the chipmaker to report $28.6 billion in revenue on 64 cents a share of earnings for Q2.

NVDA itself guided for $26 billion in revenue for the second quarter in its Q1 update and has a history of beating its projections.

At the end of Q4, for example, CEO Jensen Huang guided for $24 billion in revenue for the first quarter while the company generated $26 billion or 8.3% more than its estimates.

Put together, the aforementioned factors signal the potential for a continued rally in Nvidia stock moving forward.