CFRA’s Angelo Zino Previews Nvidia’s Earnings

WATCH: CFRA’s Angelo Zino Reveals What Could Make or Break Nvidia’s Earnings

Angelo Zino of CFRA has built a reputation as one of Wall Street’s most respected voices in technology equity research, and his insights on Nvidia ahead of Wednesday’s report are essential listening for investors. Speaking in an interview with AInvest’s Adam Shapiro, Zino laid out his expectations for the quarter and the key issues to watch. With the stock sitting on its 20-day moving average at $179, just beneath its all-time high of $184, the market is preparing for a make-or-break moment. Nvidia is not only the poster child of AI, it is the general leading the broader AI-driven rally. Whether the rally holds its ground or falters may hinge on how Nvidia executes this quarter and, more importantly, how it guides for the quarters ahead.

Zino expects another strong set of numbers out of Nvidia, but he is quick to emphasize that guidance will be the real story. “Yeah, I mean, we’re expecting another set of good results here, Adam, as far as Nvidia on the top line. We’re looking at north of 50% growth, both here for the July quarter as well as for the October quarter,” he said. Investors, he stressed, should focus on the sequential acceleration that Nvidia is expected to deliver in Q3, driven by improved supply, stronger hyperscaler investments, and the ongoing ramp of the Blackwell architecture. In short, Q2 results matter, but Q3 guidance will set the tone for the stock.

Margins are another critical focus area. Nvidia has previously guided toward expanding profitability as the year progresses, and Zino highlighted that the Street will be looking for gross margins of roughly 72% in Q2 and at least 73% in Q3. “Gross margins is something that the company has kind of alluded to expanding here as the year progresses. We need to see that and we need to see them kind of guide where the street is looking at,” he noted. With valuation stretched, any sign of pressure here could unsettle investors. Conversely, upside on margins could reinforce the bull case.

On China, Zino struck a balanced but cautious tone. “I think the good thing is we’re starting off from zero as far as China revenue is concerned on the data center side, right? I mean, in the July quarter, you’re essentially looking at no revenue for Nvidia in China for data centers. So it’s all upside really from the July quarter.” While approval to sell modified Blackwell chips into China could unlock demand, Zino sees Q3 guidance including only minimal China revenue. He pointed to the uncertainty around U.S. export policy and Chinese government restrictions as an ongoing overhang. Longer term, though, he sees enormous potential: “Our expectation is, again, potentially a $50 billion market next year, maybe Nvidia has the potential to catch 30 to 35 billion of that and potentially even more than that.” Much of this depends on regulatory approvals, but Zino stressed that China remains too large a market for Nvidia to ignore.

Competition is part of the China discussion as well. When asked about Huawei, Zino acknowledged its progress but dismissed the notion that it could displace Nvidia’s entrenched ecosystem. “They don’t have the ecosystem that Nvidia has. They don’t have the number of developers tied to Nvidia, tied to Huawei that Nvidia does, right?” The moat, in his view, remains substantial, though regulatory approvals will be the deciding factor in whether Nvidia can fully tap the Chinese market.

Turning to hyperscaler demand, Zino was clear that visibility remains strong, but not without nuance. He sees 2026 spending continuing to rise, underpinned by robust AI agent demand and broader customer diversification beyond the “big four” cloud players. But he cautioned that the upcoming Rubin chip will not deliver the same kind of performance leap as Blackwell, meaning investor expectations for another explosive demand surge should be tempered. “The Rubin jump in terms of performance improvements relative to what you just saw out of Blackwell is… there is no comparison. It’s not going to be anywhere near that. So I wouldn’t expect… the pick up and demand to be anywhere near what you saw for Blackwell. But there are a lot of benefits to Rubin. I think Rubin Ultra in 2027-28 is probably the bigger story than Rubin itself,” he said.

Zino also dismissed fears of widespread double ordering but acknowledged cyclicality will eventually resurface. For now, he sees secular drivers extending into 2027 and 2028, fueled by increasingly complex AI models and broader adoption across industries. The key, he argued, is that demand is broadening, reducing dependence on just a few customers.

With Nvidia’s stock at a critical technical level and expectations sky-high, Zino’s bottom line was clear: investors must watch Q3 guidance, margins, and commentary on China. Nvidia’s ability to meet or exceed lofty expectations will ripple beyond its own valuation. As he framed it, these results and outlook will influence confidence in the entire AI trade. For a market that has anointed Nvidia as the face of the AI revolution, anything short of another standout performance could have consequences across the sector.