Prediction: Nvidia CEO Jensen Huang Will Shock Wall Street on Aug. 26

Nvidia reports second-quarter earnings on Aug. 26, and an analyst expects the chipmaker to significantly exceed its own guidance. The company guided for approximately $91 billion in revenue, but the analyst predicts a blowout report closer to $95 billion—a potential $4 billion beat that would continue Nvidia's pattern of underpromising and overdelivering.

The setup looks compelling from a valuation standpoint. NVDA currently trades at a forward price-to-earnings ratio in the low-20s, well below the 35x+ multiples the stock has commanded during prior August periods. That compression creates room for multiple expansion if the company delivers another surprise to the upside.

Nvidia has built its reputation on conservative guidance followed by material beats, a dynamic that has rewarded shareholders who position ahead of earnings. The $4 billion revenue gap between street whispers and official guidance represents roughly 4% upside, assuming the analyst's forecast proves accurate.