Nvidia (NVDA) shares closed in the red on Wednesday as investors continued to retreat from AI stocks due to a mix of seasonal caution and valuation concerns. 

The selloff arrives only days ahead of Nvidia’s fiscal second-quarter earnings report scheduled for Aug. 27. Expectations more broadly are for the quarterly update to prove the next big catalyst for NVDA. 

Nvidia stock has been on a tear over the past four months. Despite the recent pullback, therefore, it’s up a whopping 101% versus its year-to-date low set in early April. 

What to Expect From Nvidia Stock After Q2 Earnings?

While September historically is a weak month for equities, John Vinh, a senior KeyBanc analyst, expects NVDA stock to rip higher after its Q2 earnings on Aug. 27. 

Consensus is for the AI darling to earn $0.94 per share in its current financial quarter, up roughly 45% on a year-over-year basis. 

According to Vinh, the chipmaker’s guidance may come in slightly shy of expectations next week. 

However, that shouldn’t worry Nvidia investors since it would only reflect management’s decision to “exclude China revenue given pending approvals and uncertainty on timing.”

What Could Drive NVDA Share Price Up Further From Here

Despite their strong year-to-date performance, KeyBanc recommends sticking with NVDA shares as the upcoming ramp of Blackwell Ultra in the third quarter could sustain earnings momentum. 

Plus, improving production yields for the company’s GB200 data center systems indicate a more efficient supply chain, which could translate to continued upside in its bottom line. 

The investment firm’s “Overweight” rating on Nvidia stock comes with a price objective of $215, signaling potential upside of another 25% from current levels. 

Note that analysts expect the artificial intelligence behemoth’s revenue to come in at $45.9 billion in the fiscal second quarter, or up some 11% sequentially. 

Nvidia Remains a ‘Buy’-Rated Stock Among Wall Street Analysts

Other Wall Street firm may not be as bullish on NVDA stock as KeyBanc, but they, nonetheless, forecast further upside in the semiconductor giant from here. 

The consensus rating on Nvidia shares remains at “Strong Buy” with the mean target of about $190 indicating potential upside of nearly 10% from current levels.