Nvidia&#x27;s Q1 Earnings Beat Expectations Amid AI Boom and China Export Challenges

Nvidia's earnings report might be messy, but that's not a reason to sell, Wall Street analysts say

Nvidia 's first-quarter earnings report on Wednesday afternoon could set the tone for Wall Street heading into June, but only if investors can agree on what the results truly mean about the artificial intelligence boom. The chip juggernaut has jumped 22% over the past month, even as Wall Street analysts are cautioning clients that the quarterly report likely won't be clean and could include misses on key metrics. NVDA 1M mountain Shares of Nvidia have gained more than 20% over the past month. Part of that murky outlook is due to the ways in which Nvidia is caught up in the geopolitical tensions around trade and national security. The chipmaker has already announced that it would take a $5.5 billion charge in the quarter related to U.S. government export restrictions on so-called H20 integrated circuits, but the full impact of that is still not known, which could lead to a miss on revenue guidance. Morgan Stanley analyst Joseph Moore said in a note to clients that the impact of the those restrictions is "messy" but probably not enough to hurt the long-term positive story for the stock. "Sell side does not appear to have universally modeled the impact of H20 ban, so there is some downside potential vs. stale consensus. But if [management] is convincing that supply of racks and non rack Blackwell is improving, and that there is 2h acceleration, it should not matter," Moore said. The quarterly report, which shows results through April 27 , will also not reflect the latest excitement around artificial intelligence. This month, Alphabet rolled out a slew of new AI initiatives and product ideas at its I/O developer conference , and Microsoft debuted its Claude 4 AI model . "The quarter doesn't matter; the qualitative commentary does + so does the building demand for 'more AI.' The previews and buyside conversations have been pretty consistent this quarter .... .slight beat and a guide that will be likely BELOW consensus," said a Bank of America sales desk note. "Saying the 'quarter' and guide don't matter is obviously a little extreme -- but if one can't see that the usage/adoption of AI has hit an explosive inflection in the past 2 months ... I don't know what to tell you," the note continued. Nvidia is still solidly below its record high from late last year, but that doesn't mean the bar isn't high. The stock still has buy or strong buy ratings from 56 of 64 major analysts, according to LSEG. "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year," Piper Sandler analyst Harsh Kumar said in a note to clients. -- CNBC's Michael Bloom contributed reporting.

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Nvidia is due to post earnings after the bell. What analysts are saying ahead of the report

The bullish thesis on Nvidia remains in place ahead of earnings, but analysts have questions about the company's path forward. The tech giant is due to post fiscal first-quarter results after the bell. Analysts polled by LSEG expect the chipmaker to report adjusted earnings of 93 cents per share on $43.28 billion in revenue for the quarter that ended in April. Those figures signal year-over-year earnings and revenue growth of 52% and 62%, respectively. Analysts will look for clues on how China restrictions are affecting sales, and whether the artificial intelligence demand that has powered markets in recent years remains strong. Nvidia has said it would take a $5.5 billion charge in the quarter tied to these restrictions. CEO Jensen Huang also noted that the policies have slashed the company's China market share from 95% to 50%. Still, shares have jumped more than 24% over the past month, as announcements from key hyperscalers have revived the excitement around AI. Alphabet's Google last week announced several new AI-powered tools at its I/O developer conference and Microsoft launched its Claude 4 AI model . While the stock remains below its January record, analysts polled by LSEG think Nvidia has room to run. The consensus price target suggests roughly 21% upside ahead. Of the 64 analysts covering Nvidia, 56 have a strong buy or buy rating on shares, per LSEG. Take a look at what some major analysts have to say ahead of earnings: Morgan Stanley: remains overweight, $160 price target Analyst Joseph Moore advised clients to continue buying the stock for the long haul ahead of the report. His $160 price target suggests 18% potential upside. "Sell side does not appear to have universally modeled the impact of H20 ban, so there is some downside potential vs. stale consensus. But if mgmt is convincing that supply of racks and non rack Blackwell is improving, and that there is 2h acceleration, it should not matter," Moore wrote in a Tuesday note. Deutsche Bank: maintains hold rating, $125 price target Analyst Ross Seymore likes Nvidia but thinks it is overvalued after its recent runup over the past month. He still expects the company to deliver a revenue beat, driven by growth in Blackwell and Hopper GPUs with potential for upside if China-driven demand was larger than expected before the H20 ban. "Overall, while geopolitical concerns appear to have lessened and we continue to see NVDA as the undisputed leader in AI processing/ enablement, we believe much of this goodness is fairly reflected in NVDA's share price," Seymore wrote in a May 21 note. Bank of America: maintains buy rating, $160 price target Analyst Vivek Arya warned of a "risk of messy Q2 guide" and said that depending on Nvidia's original timing of its China shipments, the disconnect between consensus estimates on lost sales and investors' expectations could be magnified. "Despite these near-term headwinds we maintain Buy on NVDA, a top sector pick given its unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year," Arya said in his recent note to clients. Wolfe Research: keeps outperform rating, $150 price target Analyst Chris Caso's price target signals upside of 10% from Tuesday's close. "What's important is that we strongly believe the rack issues are temporary (and improving), while the demand trends are secular and durable," Caso said. "Since the stock has recovered heading into the report, and we're not expecting upside, we don't consider this quarter's guidance to be a catalyst. We also can't rule out a speed bump due to slower rack production. But there's also little question that there's more than adequate demand for Blackwell, as evidenced by customers' capex commentary, and the need for inference capacity to drive reasoning models ... NVDA remains one of our favorite ideas." Oppenheimer: keeps outperform rating, $175 price target Analyst Rick Schafer's price target suggests roughly 29.2% potential upside for Nvidia, one of the more bullish forecasts on the Street. "We see upside F1Q (Apr) results and a roughly in-line F2Q (Jul) outlook, despite the loss of H20 sales to China following US govt restrictions. China is now < 5% of sales. Production of flagship GB200 rack-scale systems appears to have moved past their initial "growing pains," he wrote in a note. "NVDA remains best positioned in AI, in our view, benefiting from full-stack AI hardware/software and unique rack-level approach." Piper Sandler: maintains overweight rating, $150 price target Analyst Harsh Kumar said he is "looking for tea leaves for a strong back half of the year" rather than putting up high expectations for Nvidia's latest quarter. This upcoming print is likely the last of negative news for Nvidia this year, he said. "All in all, we think that NVDA is poised to be flat to down into the print this week. We think that April quarter is poised for a miss in revenues largely from macro uncertainty and from the H20 ban ... We note that for the most part the factors resulting in a miss are outside the company's control. Despite this, we see a strong back half of the year given HPC capex coming on strong coupled with macro forces improving driven by sovereign investments following the announcements of several large deals over recent weeks. We advise investors to weather the uncertainty and stay long the stock," he said in a Tuesday note to clients.

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We're raising our Nvidia price target after a great quarter and rosy guidance

Nvidia shares jumped in extended trading Wednesday evening after the AI chipmaker reported better-than-expected quarterly revenue and earnings. It also provided an upbeat view of its current second quarter despite restrictions on what it can sell to China. Revenue in its fiscal 2026 first quarter increased 69% year over year to $44.06 billion, beating the $43.31 billion the Street was looking for, according to estimates compiled by data provider LSEG. Adjusted earnings per share increased 57% year over year to 96 cents in the three-month period ended April 27, exceeding the consensus of 93 cents, LSEG data showed. Both EPS and the quarterly estimate excluded charges related to the H20 chip ban in China. Why we own it Nvidia's high-performance graphic processing units (GPUs) are the key driver behind the AI revolution, powering the accelerated data centers being rapidly built around the world. But Nvidia is more than just a hardware story. Through its Nvidia AI Enterprise service, Nvidia is building out its software business. Competitors : Advanced Micro Devices and Intel Most recent buy : Aug 31, 2022 Initiation : March 2019 Bottom line Nvidia's results are proof that there has been no slowdown in the buildout of AI. During the post-earnings conference call, CEO Jensen Huang pointed out four positive surprises since the company's annual GTC event in March that have driven a surge in demand. The first surprise was advancements in reasoning AI, which is included in popular large language models like ChatGPT. According to Huang, reasoning models are creating a step function surge in inference demand, which in turn increases the demand for chips because they are extremely compute-intensive. Another positive surprise was the rescinding of the so-called AI diffusion rules, which ended right at the same time that countries woke up to the importance of AI as an infrastructure, according to Huang. A third positive surprise was the development of enterprise AI agents, which he called "game-changing." The fourth and last surprise is related to industrial AI, and all the on-shoring manufacturing and the building of plants around the world, creating demand for the Nvidia Omniverse. These are important callouts, as they underscore the rapid pace of advancements in artificial intelligence, which continues to drive strong demand for Nvidia's chips. The growing integration of AI into everyday life further reinforces this trend. This is clear evidence that the AI story is still in its early innings. NVDA YTD mountain Nvidia YTD Accordingly, we're raising our price target to $170 from $165. But given Nvidia's rapid 55% stock rise from its 52-week low on April 4 through Wednesday's close of $134, we are keeping our hold-equivalent 2 rating. In after-hours trading, shares added another 5%. Commentary Heading into earnings , some of our key questions centered on the Blackwell ramp, Sovereign AI, hyperscaler demand, and developments in China. 1. Blackwell : After some early supply chain issues, the ramp of the new Blackwell superchip called GB200 has gone well. Despite the vast complexities of building it, Nvidia saw a significant improvement in manufacturing yields and an increase in rack shipments to customers. Blackwell contributed 70% of the $34.16 billion of data center compute revenue in the quarter. Overall, data center revenues, which also included networking sales, increased 73% year over year to $39.1 billion, slightly missing estimates of $39.36 billion, according to FactSet. Nvidia is always innovating its chipsets, making them more powerful and efficient with every new iteration, but also backwards compatible. The next product on its roadmap is the Blackwell Ultra or GB300. The company said samplings of these systems began earlier this month at the major cloud service providers, and it expects production shipments to start later this quarter. Nvidia is anticipating a smooth ramp of the Blackwell Ultra based on what it learned from Blackwell. 2. Sovereign AI: During the call, Huang called Sovereign AI "a new growth engine" for the company as countries around the world build out national AI factories. " Countries are racing to build national AI platforms to elevate their digital capabilities," the CEO said. Later, he likened the need for countries to invest in AI infrastructure to their past investments in electricity and the internet. Rules on how countries are purchasing AI chips from Nvidia have been dynamic lately, with President Donald Trump ending the AI diffusion rules in favor of a new policy to promote AI tech with trusted partners. One way is through trade agreements, like what we saw out of the Middle East a few weeks ago. Next up could be Europe. Huang said he will be traveling through the continent next week and " just about every country needs to build out AI infrastructure and there are umpteen AI factories being planned." 3. Hyperscalers : There's been no let-up or digestion in demand from the so-called hyperscalers, which is another term for large data center and cloud service providers like Alphabet and Oracle as well as Club names Amazon , Microsoft , and Meta Platforms . They all signaled alongside, their latest earnings reports, their intentions to keep spending aggressively on AI. Nvidia said Wednesday that on average, major hyperscalers are each deploying nearly 1,000 NVL72 racks or 72,000 Blackwell GPUs per week and are on track to further increase output this quarter. One example that CFO Colette Kress gave was that Microsoft has already deployed tens of thousands of Blackwell GPUs, but that's expected to increase to the hundreds of thousands. 4. China : As for its business in China, Nvidia shipped out $4.6 billion worth of H20s prior to the new export licensing requirement. It was unable to ship an additional $2.5 billion of H20 revenue in the quarter. The export license changes, which went into effect in mid-April, caused the company to disclose it will record a $5.5 billion charge in the quarter tied to H20 inventory, purchase commitments, and "related reserves." In a bit of good news, Nvidia said Wednesday it only had to record a $4.5 billion charge this quarter, less than originally anticipated, because it was able to reuse certain materials. Nvidia said it is still evaluating its options to supply chips to the region in compliance with the U.S. government's export control rules. Reuters reported over the weekend that Nvidia is planning mass production of a new AI chip for China that is compliant with restrictions. Huang said on the earnings call that Nvidia does not have anything right now to announce, but the company is "considering it" and "thinking about it." Losing access to the China AI accelerator market would have a material adverse impact on Nvidia's business, Kress said on the earnings call, a market she thinks will grow to nearly $50 billion. Huang echoed that sentiment in an interview with Jim Cramer for Wednesday evening's "Mad Money." Huang said that trade with China is important if the U.S. wants to be the global AI leader. "There are so many developers there [in China], and because the world is going to adopt technology from one country or another -- and we prefer it to be the American technology stack," the CEO told Jim. Guidance Looking at Nvidia's fiscal 2026 second quarter outlook, the company expects revenue to be approximately $45 billion, plus or minus 2%. This view was slightly below the consensus estimate of $45.9 billion, according to LSEG. However, it reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations. Moving down the line, Nvidia expects fiscal Q2 adjusted gross margins of 72%, plus or minus 50 basis points. That's roughly inline with the 72.1% expected per FactSet. According to an earnings snapshot note from Truist, Nvidia's implied fiscal second quarter EPS guidance is 98 cents at the midpoint, one penny shy of the 99-cent consensus, according to LSEG. This is pretty solid considering the loss of sales of H20 chips in China. (Jim Cramer's Charitable Trust is long NVDA, AMZN, META, MSFT. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

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Nvidia is popping after earnings beat. Here's what Wall Street analysts had to say

Analysts liked what Nvidia had to say in its latest quarterly results . The artificial intelligence chip darling reported fiscal first-quarter earnings and revenue that beat analyst expectations. The company's data center business led the charge, with sales soaring 73% year over year. Nvidia's current quarter revenue guidance was also about in line with analyst estimates at $45 billion. That outlook would have been about $8 billion higher excluding lost sales from a recent restriction on exporting its H20 chips to China, the company added. Nvidia shares popped more than 6% in the premarket following the release. Other semiconductor stocks followed Nvidia higher. Dutch semiconductor equipment firm ASML traded more than 2% higher . AMD climbed 3%, and Micron Technology advanced 2.6%. Overall, most analysts reiterated their buy or outperform equivalent ratings on Nvidia following its report, with some hiking their price targets. Here's what those at some of the biggest shops on the Street had to say" JPMorgan reiterates overweight rating and $170 price target The firm's updated target implies 26.1% upside from Wednesday's closing level. "The team continues to maintain a 1- 2 step lead ahead of competitors with its silicon/hardware/software platforms and a strong ecosystem, and the team is further distancing itself with its aggressive cadence of new product launches and more product segmentation over time." UBS maintains buy rating and $175 price target The firm's new target implies nearly 30% upside from Wednesday's close. "We see the debate having shifted in a positive direction here as results and guidance were as we (and most investors) expected but gross margin commentary was a little better than feared, and NVDA's comments on GB200 rack shipments (and progress on GB300) were even more bullish than the positive feedback at Computex last week and give little air to investor concerns about supply chain inventory. ... With China stripped out of the model, the set up here seems constructive as it seems likely the Trump administration will allow NVDA to ship a new SKU into China (we assume ~$2-3B/Q add-back), hyperscaler capex vectors remain to the upside, and AI is rapidly diffusing around the world given the sheer size of some of these projects ranging from Humain/Saudi Arabia (~$10B for NVDA) to Stargate (~$20B for NVDA) to the 5GW AI campus in UAE (~$100B for NVDA)." Citi maintains its buy rating and hikes its price target by $30 to $180 The bank's new target calls for more than 33% upside from here. "NVDA reported Apr-Q results in-line and Jul-Q sales of $45B ~$1B above our preview expectations clearing the final hurdle of the China H20 ban transition quarter. Moreover, Blackwell sales of $24B topped our $20B expectations and management maintained mid 70's gross margins target on improving Blackwell profitability with no major tariff impact. As such, with margins expanding thru Jan-Q, we now expect NVDA stock to break its range bound trend since mid-last year and likely make a fresh 52 week high. We see Citi's Silicon Valley Bus Tour next week and GTC Paris June 11-12 where we expect sovereign AI Europe announcements as positive catalysts for the stock." Jefferies reiterates buy rating with $185 price target Its target sees more than 37% upside ahead. "The biggest issue for the stock was the disconnect between Blackwell sales and GB200 shipments but that is now in the rearview as NVDA noted multiple hyperscalers ramping 1k NVL72s/week. We would not run-rate several thousand NVL72 per week but the point is that whatever inventory that built up is clearing fast. ... Altogether 2H25 shaping up nicely for NVDA with likely beat/raises from here, while the setup for the rest of AI names becomes more challenging." Barclays keeps overweight rating and increases price target to $170 from $155 Its updated target implies more than 26% upside. "4 major improvements to demand since GTC are allowing the company to largely offset the China headwind. 1) Inference taking off with reasoning models, 2) AI factories, 3) AI diffusion off the table, 4) Enterprise agents. ... Material step-up (64% seq.) in Networking is also indicative of better system sales, which should alleviate concerns on product transition and the company highlighted initial GB300 sales later this quarter. ... The 2H should see a material acceleration as more system deployments hit the market and Ultra transition layers on." Wolfe Research keeps outperform rating and increases price target to $170 from $150 Its new target also calls for more than 26% upside. "NVDA remains among our favorite names, as the chief beneficiary of the AI revolution. Guidance implies that DC revenue (ex-China) will be up 15% q/q in JulQ, indicating solid Blackwell growth despite well documented rack production constraints. Consistent with our preview, many other investor concerns have by now been addressed. China is now out of numbers (and some could possibly come back), AI diffusion rules won't be enforced, capex plans appear solid, and it now appears that the rack issues have improved." Morgan Stanley maintains overweight and top semis pick ratings and lifts price target by $10 to $170 The target likewise sees more than 26% upside. "NVIDIA is putting digestion fears fully to rest, showing acceleration of the business other than the China headwinds around growth drivers that seem durable. Everything should get better from here." Bank of America reiterates buy rating and hikes price target by $20 to $180 It's updated target implies more than 33% upside. "Three major takeaways from the Q1 call: 1) China derisked, with $15bn in 1H sales of H20 product now already in the model, 2) Blackwell racks in full production, with every large hyperscaler now ramping close to 1K racks/week, 13K racks/quarter or ~$30bn+/q at $2.5mn+ rack ASP (or $100bn+ across the top few hyperscalers, though NVDA didn't quantify further), and 3) NVDA confident in GM recovery back to mid-70s % sometime later in the year, another sign of improving demand and rack-scale execution."

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Jim Cramer: These are the 2 things that can send Nvidia stock up another 40%

CNBC's Jim Cramer said there is a path for Nvidia to reach $200 a share -- more than 40% upside from Thursday morning's levels, even when factoring in its post-earnings surge. "The next leg in Nvidia has to be sovereign AI, or China. If they get both, then the stock goes to $200," Cramer said before the market opened on "Squawk on the Street." Shares of Nvidia opened Thursday's session at $142.25 a share, up around 5.5%. The advance extends Nvidia's robust rally off its April 4 closing low of $94.31 a share, which coincided with Wall Street's broader tariff-driven sell-off. The stock is less than 7% its all-time closing high set in January. Cramer's Charitable Trust, the portfolio used by the Investing Club, has owned a stake in Nvidia well before the current artificial intelligence boom began in late 2022. Sovereign AI path Nvidia appears to be in good shape to check Cramer's first box on sovereign AI, a term the company has coined to describe investments in AI infrastructure by countries outside the U.S. In recent weeks, Nvidia struck agreements with Saudi Arabia and the United Arab Emirates to sell large amounts of AI chips as part of large data center projects in those countries. Jensen Huang, co-founder and CEO of Nvidia, was traveling in the Middle East alongside President Donald Trump when those chip deals were announced. Trump's decision to scrap a controversial Biden-era policy -- known as the "AI diffusion rule," which placed caps on AI chip exports to most countries around the world -- made it possible for Nvidia to ink those deals with Saudi Arabia and the UAE. Now, Huang is set to travel to Europe in the coming days, and the executives' comments on Wednesday night's earnings call suggest that additional sovereign AI deals could soon be announced. While American tech giants such as Microsoft and Meta Platforms , also Club names, remain Nvidia's most important customers, investors have wanted to see the chipmaker's revenue streams diversify to help sustain topline growth. Sovereign AI deals help accomplish that. China hurdles One potential obstacle to checking Cramer's second box on China: It would require another change in policy from the White House, which in April tightened restrictions on the kinds of artificial intelligence chips that Nvidia can sell to customers based in the world's second-largest economy. Nvidia estimates that it will lose out on $8 billion in potential revenue from Chinese customers in its ongoing second quarter as a result of the tougher export controls. It also booked a $4.6 billion charge in its February-to-April period tied to the policy changes. On Wednesday's earnings call, Huang was pointed in his criticism of the U.S. government's restrictions, arguing the policy -- first embraced by the Biden administration, then toughened under Trump -- does not accomplish its stated goal of preventing China from developing advanced AI. Huang also offered a similar assessment in an interview with Cramer on "Mad Money" on Wednesday night. "Because there are so many developers there [in China] and because the world is going to adopt technology from one country or another -- and we prefer it to be the American technology stack," Huang told Cramer. Cramer said Thursday morning that he's not sure how Trump will perceive Huang's comments on the Chinese export controls, given the president just did away with the AI diffusion rule. "Do you really think you can come in right now and say, 'What would be right is that you also give us China?' I don't know. That's not 'Art of the Deal," Cramer said, referring to Trump's famous 1987 book. One possibility would be Nvidia creating a modified, made-for-China version of its top-end AI chips that complies with Washington's performance requirements. Huang said on the earnings call that Nvidia is "considering" whether to do that. "Obviously, the limits are quite stringent at the moment. And we have nothing to announce today. And when the time comes, we'll engage the administration and discuss that," Huang said.

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Nvidia's earnings were not exceptional. How to make money in options if gains slow down

Nvidia's fiscal first-quarter results were strong, but tempered by challenges that kept them from being exceptional. The company reported record revenue of $44 billion, up 69% year over year and surpassing analyst estimates of $43.3 billion. Data center revenue, the core driver, reached $39.2 billion, close to estimates and up 73% year on year, driven by robust demand for AI chips. Nvidia's revenue guidance for Q2 fiscal 2026 was $45 billion, in line with analyst expectations, despite an $8 billion hit from China export restrictions. CEO Jensen Huang emphasized the "booming" demand for AI hardware, particularly for Blackwell GPUs, with shipments increasing to meet the needs of hyperscalers. Gaming revenue grew 42% to $3.8 billion, automotive and robotics surged 72% to $567 million, and professional visualization rose 19% to $509 million. Nvidia shares rose 5% on the report. Investors breathed a sigh of relief that the revenue projections didn't reflect an even larger China-related shortfall. That said, China's restrictions did have an impact. NVDA 5D mountain NVDA rises after earnings The company noted in its release that it was "unable to ship an additional $2.5 billion of H20 revenue in the first quarter" due to export licensing requirements. In the earnings call, it said that "losing access to the China AI accelerator market, which we believe will grow to nearly $50 billion, would have a material adverse impact on our business going forward and benefit our foreign competitors in China and worldwide." That statement highlights that, while restricting sales to China may slow them down temporarily, it will increase demand for chips from Nvidia's competitors and provide them with additional resources to dedicate towards research and development. Put differently, an unintended consequence of restricting access to technology to potentially unfriendly countries might not only hamper one of the U.S.' most successful companies. Time will tell, but Jensen also warned that the gap between US products and Chinese alternatives is decreasing. Options premiums will certainly fall somewhat - the "vol crush" - now that some light has been shed on the effects of the new administration's policies, but the cloud has not been lifted. Consequently, I expect a measured approach to one's Nvidia positions after a near 40% rally in the stock since mid-April makes sense. The trade One way to enhance one's returns if a stock remains only modestly bullish is to sell covered calls. Perhaps 20 delta or so with an expiration of 4-6 weeks. The July 3 weekly 155 calls were 20^ ("^" is option trader shorthand for "delta") as of Wednesday's close, with 35 days until expiration. However, a bit of choppiness is anticipated in the near term as investors digest the results more fully, and it may be necessary to adjust one's strikes to identify the 20 delta calls accordingly. DISCLOSURES: None. All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.

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Quartz

Nvidia's $43 billion question: Can Jensen Huang keep the AI hype train on track?

The $3.3 trillion chipmaker will report its fiscal first-quarter earnings for 2026 on Wednesday, and expectations are enormous. Analysts forecast a revenue surge to $43.26 billion, nearly 66% higher than the same quarter a year ago, with adjusted earnings per share jumping to $0.88 from $0.61, a growth of about 44%. Still, those forecasts might be selling the semiconductor giant short. The company has a habit of surpassing earnings expectations -- topping earnings estimates by an average of about 7% in the last two quarters. Nvidia, whose chips have become the backbone of modern artificial intelligence, has been on a staggering run. But with stakes this high, investors are laser-focused on whether Nvidia's latest bets -- such as its next-gen Blackwell platform, deepening cloud partnerships, and response to U.S.-China chip tensions -- will deliver the kind of blockbuster quarter the markets have come to expect. At the heart of Nvidia's revenue machine is its Data Center business, which has grown into its largest and most profitable segment thanks to insatiable demand from cloud providers, AI startups, and enterprise customers building foundation models. Analysts expect this division alone to generate $21.27 billion in Q1 revenue. CEO Jensen Huang has positioned Nvidia not just as a chipmaker but as the infrastructure layer powering the AI revolution. The company is hoping that narrative continues with Blackwell, the GPU architecture introduced in March that Huang says will unlock the training and deployment of models that are orders of magnitude more powerful than current systems. The flagship GB200 Grace Blackwell Superchip is already being integrated by hyperscalers such as Amazon Web Services (AMZN-2.87%), Google Cloud (GOOGL-1.57%), Microsoft Azure (MSFT-0.92%), and Oracle (ORCL-0.97%). Nvidia may be dominant, but it's not operating in a vacuum. Rival chipmakers like AMD (AMD+0.47%) and Intel (INTC-1.50%) are racing to close the performance gap, while companies such as Google, Amazon, and Microsoft are doubling down on custom silicon to reduce reliance on third-party GPUs. At the same time, a wave of Chinese AI chipmakers is emerging as Nvidia contends with export restrictions, creating fresh competitive pressure in one of its most important markets. But Nvidia isn't just about GPUs anymore. As investor expectations climb, the company is quietly broadening its AI stack -- moving beyond silicon into networking, software, and cloud integration in a bid to become the full-stack backbone of AI infrastructure. Nvidia is deepening its economic moat and creating more stable, recurring revenue streams that could smooth earnings volatility over time. Through partnerships with major cloud providers, Nvidia is embedding itself into the very platforms AI developers rely on. Basically: Nvidia is trying to become more than just a supplier of AI tools. The company wants to become a critical platform for AI development itself. Investors will be watching closely for clear evidence that Nvidia's expansion beyond GPUs is starting to pay off in revenue. Wall Street wants to see whether the company's networking products are contributing to meaningful growth within the data center segment. Margins will also be a key focus. Networking and software typically deliver higher profitability than hardware, so any signs of margin expansion would support the narrative that Nvidia is transforming into a more durable, high-margin platform business. (Which could reassure investors that Nvidia's growth is sustainable and not just tied to cyclical chip demand.) Finally, Wall Street will listen for signs that Nvidia's AI software stack is gaining adoption among large enterprises outside the hyperscaler ecosystem -- into sectors such as healthcare, finance, and manufacturing -- which would highlight the long-term potential of Nvidia's platform strategy and reinforce the company's role as the backbone of AI development. There is, of course, a major x-factor: China. Nvidia is ground zero in the U.S.-China tech rivalry -- its GPUs might just be the most valuable components in the AI arms race, and its position is increasingly shaped by policy, not just engineering. Nvidia has long relied on the Chinese market for a sizable chunk of its revenue, but that has changed dramatically in the wake of tightening U.S. export controls and tariffs. Huang said recently that years of U.S. restrictions on AI chip exports were a strategic misfire that cost Nvidia billions and handed Chinese rivals a powerful incentive to innovate. Nvidia, which was once dominant in China with a market share approaching 95% at the start of the Biden administration, now holds just 50%, Huang has said. To defend -- and expand -- its foothold, Nvidia is looking to establish an R&D center in Shanghai and is reportedly preparing further downgraded chip models that comply with U.S. rules. Investors will be looking to see the impact of U.S. export controls: how much they've dented sales, whether downgraded chips can sustain demand in China, and more. Wall Street will also be watching for any supply chain stress; Nvidia relies heavily on TSMC (TSM+0.63%) for manufacturing, and its capacity constraints remain a gating factor. While the company remains dominant in many global markets -- and is expanding into the Middle East through Saudi Arabia, in what one analyst called a "watershed moment," and the United Arab Emirates -- Wall Street will be looking for updates on how Nvidia plans to navigate what could be its most challenging international landscape in years. Nvidia is the poster child of the AI trade, and its financial performance serves as a high-frequency indicator of how far the generative AI economy has progressed from hype to hard returns. A strong beat would signal that tech giants (see: Microsoft, Google, Amazon) are continuing to pour billions into AI infrastructure, reaffirming the AI investment thesis that has largely powered the Nasdaq's rally. Nvidia's valuation is rich, but so are many other AI-linked names. If Nvidia meets or beats expectations, it could justify the current risk appetite for high-growth names. But a miss, even a tiny one, could trigger a sentiment reset. If forward guidance is strong, it'll show that enterprises are starting to spend on AI beyond experiments -- e.g., in areas such as software integration, inference, and LLM deployment. Nvidia's stock has been on quite a wild ride in 2025. After hitting a high earlier in the year, shares fell amid broader market turbulence and investor anxiety about whether the AI trade had gotten overheated. President Donald Trump's April 2 "Liberation Day" announcement sent the stock into a sharp dip, but it has since rebounded. Now, this quarter's results could be a clearing event that could reestablish momentum. One looming concern: supply chain capacity. Demand for Nvidia's chips continues to exceed supply, and while the company has worked to scale production, it may still be leaving money on the table simply due to how long it takes to manufacture and deliver its most advanced products. Investors will also be watching closely for details on capital expenditures and supply chain resilience. Wall Street will want to see how aggressively Nvidia is investing to expand capacity, whether through additional foundry partnerships or securing more critical components. Any signs that supply constraints are easing -- or worsening -- could influence how sustainable current growth trajectories appear. But the big question now is whether Nvidia can not only meet but beat expectations -- something it has done consistently. While Nvidia remains possibly the most important company in the world's hottest tech sector, that also means the pressure is greater than ever.

[10]

Inc. Magazine

Nvidia Earnings Give the Volatile Stock Market Its Latest Test

Despite beating Wall Street estimates in each of the past three quarters, Nvidia's stock hasn't rallied on earnings over the last year. That includes the nearly 9% sell-off in February, which followed an update covering extremely high AI chip demand. FactSet estimates see first-quarter earnings of $0.73 per share and revenue of $43.3 billion, up 66 percent from a year ago. While that sounds strong in a vacuum, it's a slowdown from the triple-digit expansion Nvidia posted in 2024, when revenue was up 262 percent year-over-year the same quarter. Meanwhile, the $5.5 billion inventory write-down tied to the ban on H20 chips to China is set to drag gross margins down as much as 58 percent, according to Bank of America strategists.

[11]

What Analysts Think of Nvidia Stock Ahead of Earnings

Analysts may ask CEO Jensen Huang about sales in China after the Trump administration imposed tighter export controls. Nvidia (NVDA) is slated to report fiscal first-quarter results after the market closes Wednesday, with Wall Street expecting a record quarter from the world's second-most valuable company. Analysts on average expect Nvidia to report quarterly revenue of $43.38 billion, 66% higher year-over-year, and adjusted net income of $21.29 billion, or 87 cents per share, up from $15.24 billion, or 61 cents per share, a year earlier. Wedbush analysts said the chipmaking titan will continue to be a beneficiary of huge investments in AI infrastructure from hyperscalers like Meta (META), Google parent Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). Spending on AI "in particular ends up flowing to [Nvidia] which supplies a disproportionate amount of the AI server value," the analysts said. Analysts may ask CEO Jensen Huang about sales to China after the Trump administration earlier this year imposed tighter export controls. Nvidia has warned of a $5.5 billion charge due to restrictions on its H20 chip, and Huang reportedly called the export curbs a policy "failure" that is driving China to accelerate development of its own AI chips. Oppenheimer analysts expect the impact of the restrictions to be relatively modest. "We see upside ... despite the loss of H20 sales to China," the analysts said, noting that the country now makes up just 5% of Nvidia's total sales. Both Wedbush and Oppenheimer have "outperform" ratings for Nvidia stock, along with price targets of $175. Of the 18 analysts tracked by Visible Alpha, 16 have a "buy" rating for Nvidia stock, alongside two "hold" ratings. Their consensus price target near $164 would suggest about 25% upside from Friday's closing price. Shares of Nvidia have fallen slightly this year though are still up about 25% over the past 12 months.

[12]

These Stocks Could Post Big Moves After Nvidia Earnings

Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Nvidia is scheduled to report quarterly results after the bell on Wednesday, in what could be a major test of the AI trade's resilience. Nvidia earnings are a blockbuster, market-moving event for Wall Street. Investors parse the results for any sign that AI demand or investment is waning, making the report a catalyst for AI infrastructure stocks. Most of these AI stocks are currently trading at or above their price heading into Nvidia's last earnings report at the end of February. Those results weighed heavily on the majority of AI beneficiaries. Shares of server maker Super Micro Computer (SMCI) and nuclear energy provider Vistra (VST) outpaced Nvidia's (NVDA) 8.5% decline the day after its last report, tumbling 16% and 12%, respectively. Constellation Energy (CEG), also a nuclear power provider, slumped about 7.5%. Nvidia's position as the world's largest semiconductor company has made it something of a bellwether for the entire industry. The PHLX Semiconductor Index (SOX) tumbled more than 6% after Nvidia's last report, its biggest decline since January's DeepSeek panic caused the index to nosedive. Major Nvidia competitors Broadcom (AVGO) and Advanced Micro Devices (AMD) tumbled 7% and 5%, respectively. Chip fabrication services provider Lam Research (LRCX) and memory chip maker Micron (MU) also closed sharply lower. The companies that supply data centers with essential networking equipment also tend to move on AI demand signals parsed from Nvidia's earnings. Shares of Arista Networks (ANET) slid 5% following Nvidia's February report, while fiber optic technology provider Corning (GLW) shed 2% and network provider Lumen Technologies (LUMN) dropped 4%. Granted, stocks within the AI ecosystem don't always move in tandem. Nvidia shares soared more than 9% on its earnings report one year ago, but the boost its results lent to other AI infrastructure stocks fizzled out before the day's end. Supermicro shares rose as much as 11% that day before sliding to close 3% lower.

[13]

Nvidia Earnings Live: Traders Pricing in Big Stock Price Move After Results

Stephen Wisnefski is the Executive Editor of News at Investopedia. He has more than two decades of experience as a journalist and newsroom leader, including 25 years at Dow Jones and The Wall Street Journal. The stock market was in a holding pattern on Wednesday as investors awaited the latest earnings report from Nvidia (NVDA), the poster child of the AI craze. Nvidia's earning reports have become blockbuster events on Wall Street, where every three months investors probe the chipmaker's finances for a read on global appetite for artificial intelligence. That appetite has been surprisingly durable this year in the face of elevated interest rates, flaring trade tensions, and rising economic uncertainty. Nvidia's earnings have the potential to sustain or slam the brakes on the AI rally that has fueled much of the stock market's gains over the past few years. The rally has hit several speed bumps this year. Chinese start-up DeepSeek in January released an advanced AI model that called into question the assumptions underpinning American AI investments into question. No sooner had AI stocks shaken off the DeepSeek scare, than President Trump's unpredictable trade policies began to wreak havoc on U.S. markets. Nvidia and the AI trade bounced back in the last month as trade tensions cooled, putting the stock less than 10% off its all-time closing high. Follow along here for live updates on the AI chip giant's quarterly results, which are due shortly after the closing bell, as well as market reaction and comments from executives during a conference call with analysts.

[14]

Watch These Nvidia Price Levels as Stock Surges After Strong Earnings Report

Nvidia (NVDA) shares jumped in extended trading on Wednesday after the AI chipmaker surpassed Wall Street's quarterly revenue expectations. The company announced after the closing bell that its fiscal first-quarter sales rose 69% to a record $44.06 billion, as major technology companies continue to ramp up spending on AI infrastructure. Profit was lower than analysts had estimated, as the company recorded a $4.5 billion charge in the quarter due to restrictions on the sale of its H20 chips to China, though the amount was less than the $5.5 billion the company said it anticipated last month. CEO Jensen Huang said global demand for Nvidia's AI infrastructure remains "incredibly strong", adding that he sees accelerating demand for AI computing with the use of AI agents becoming mainstream. Nvidia shares slumped between January and early April amid concerns of a slowdown in AI spending and the Trump administration's unpredictable trade policies. However, the stock has rebounded 56% from last month's low as trade tensions eased and the chipmaker announced a partnership with an AI subsidiary of Saudi Arabia's sovereign wealth fund. The stock rose nearly 5% to just above $141 in after-hours trading Wednesday. The stock hasn't traded above $140 during regular trading hours since February. Below, we dial into Nvidia's four-hour chart and apply technical analysis to identify major price levels that investors will likely be watching. Nvidia shares rallied sharply after breaking out from a pennant earlier this month, before consolidating again within a flag pattern above the closely watched 200-day moving average (MA). More recently, the stock has broken out above the flag pattern's upper trendline, a move that has coincided with the 50-day moving average crossing above the 200-day MA to form a bullish golden cross. Indeed, the stock's upside momentum looks set to continue, though investors should watch if trading volume confirms the move higher. During the lead-up to earnings, share turnover had declined, indicating investors remained on the sidelines ahead of the highly anticipated results. Let's identify three major overhead areas on Nvidia's chart to watch if the stock continues tracking higher and also locate a support level worth monitoring during potential retracements. Investors should initially keep their eyes peeled on the $143 area. The shares may run into overhead resistance at this level near the prominent mid-February swing high, which also closely corresponds with a range of trading activity on the chart extending back to late October. A close above this area could see the shares climb to around $150. Investors who have averaged into the stock at lower prices may decide to lock in profits in this location near several peaks that formed on the chart between November and January just below the stock's record high. To projects an upside price target if the stock moves into price discovery mode, investors can use the bars pattern tool. When applying the analysis to Nvidia's chart, we take the strong move higher that preceded the flag and reposition it from the pattern's breakout point. This projects a target of around $160, nearly 20% above Wednesday's closing price. During retracements, it's worth monitoring the $130 level. Investors may look for buying opportunities in this region near a multi-month horizontal line that connects the bottom of the flag pattern with a series of peaks and troughs on the chart stretching back to August last year. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

[15]

Nvidia's golden run may hit a bump as analysts send out rare red flags before much-anticipated earnings call

Nvidia, the AI chip giant that has become a symbol of the artificial intelligence boom, is preparing to report its first-quarter earnings on Wednesday, May 28, but this time, analysts have flagged risks for the company's earnings, according to The Street. While, the chipmaker is still expected to post big numbers, around $43 billion in revenue, up 65% from a year ago, but, that's a sharp slowdown from the 262% growth Nvidia recorded in the same period last year, reported The Street. Even Nvidia's stock had struggled in March and early April because of US president Donald Trump's tariff uncertainties, however, the stock has surged in the past month, as per the report. ALSO READ: After Harvard, will Trump go after Columbia and Stanford? Speculation is rife as all three colleges rejected Barron Meanwhile, Bank of America has revised its outlook on Nvidia stock before its earnings and has maintained a "buy" rating with a price target of $160, as per the bank's research report, according to The Street. The Bank of America's analysts have pointed out that the AI chipmaker faces near-term headwinds of the United States government's chip sales restrictions to China, as per the report. However, the analysts also highlighted that Nvidia's stock remains a "top pick" because of its "unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year," quoted The Street. ALSO READ: Banking restrictions? Trump to sanction Russia this week as Putin continues to attack Ukraine However, the analysts have flagged risks of a "messy Q2 guide" for Nvidia, as per the report. Bank of America's analysts wrote that, "NVDA could guide FQ2 to as low as $41bn, below recently lowered ~$46bn consensus," and also added that this could lead to earnings per share of 85 cents, or 16% below consensus, reported The Street. As per The Street report, the analysts have also estimated Nvidia's full-year earnings per share outlook to be between $3.90 and $4.00, which is around 10% below the current consensus. How much revenue is Nvidia expected to post? About $43 billion, up 65% from a year ago, but much slower than the same period last year with 262% growth. What's Bank of America saying about Nvidia? They've kept a "Buy" rating and $160 price target but warned of potential short-term risks.

[16]

Nvidia earnings to reveal hit from US export curbs on China

Nvidia investors await clarity on the financial impact of US chip export curbs to China as the company prepares to report earnings. The restrictions may cost up to $4.5 billion per quarter. While new markets like the Middle East offer growth, China remains a major uncertainty for future sales.Nvidia investors will look for definitive answers on how much U.S. chip curbs on China will cost the company when it reports results on Wednesday, even as a pullback in other regulations is expected to open up new markets. In a fresh effort to stymie Beijing's access to cutting-edge technology, the Trump administration last month put export limits on Nvidia's H20 chip - a move the company said would result in $5.5 billion in charges. CEO Jensen Huang, who pegged the market for AI chips in China at roughly $50 billion next year, said last week Nvidia had walked away from $15 billion of sales in the country after the curbs. Nvidia does not break out sales for the H20, the only AI chip it was allowed to sell to China, a market which accounted for 13% of its revenue last year. "The primary question around results and guidance is can Nvidia lift sales enough to offset the loss of H20 or China business," Wedbush analysts said ahead of the earnings report. While sources have told Reuters that company is planning to launch a new AI chipset for China based on Nvidia's latest generation Blackwell architecture, the uncertainty of losing its China business has dented its stock. The stock has already been under pressure from concerns about mounting AI infrastructure costs. It was down 2% this year, a far cry from their nearly three-fold gain last year. "China will probably be the biggest swing factor for Nvidia's quarter," said D.A. Davidson analyst Gil Luria. The company is expected to report that first-quarter revenue surged 66.2% to $43.28 billion, according to data compiled by LSEG. Susquehanna analysts estimated the restrictions impacted the last three weeks of the April quarter, costing Nvidia about $1 billion in sales. For the rest of the year, lost revenue could amount to as much as $4.5 billion per quarter, they said. Wedbush estimated the quarterly hit at $3 billion to $4 billion. Adjusted gross margin is expected to drop more than 11 percentage points to 67.7%. The write-downs related to H20 shipments could translate to a gross margin hit of up to 12.5%, Wedbush said. Nvidia CEO Huang recently called U.S. semiconductor curbs on China "a failure," saying they have only pushed Chinese rivals such as Huawei to speed up development of homegrown chips. NEW REGIONS Washington, however, has said it is going to modify a Biden-era export curb called the AI diffusion rule that sought to curb exports of sophisticated AI chips by dividing the world into three tiers, with China blocked entirely. This easing could open up new geographies of growth for Nvidia including the Middle East, though analysts say the region's revenue contribution in the near term will be small. As part of U.S. President Donald Trump's trade deals with some Gulf countries, Nvidia has said it would sell hundreds of thousands of AI chips to Saudi Arabia, including 18,000 of its latest "Blackwell" chips to a startup owned by the country's sovereign wealth fund. After months of worries that investment in AI from large cloud providers was stalling, Nvidia investors have found confidence in pledges from companies including Alphabet's Google to keep spending. Still, the quarters of blowout beats may be over for the company. In its last fiscal year, Nvidia beat Wall Street's quarterly revenue estimates by 4.9% on average. It delivered quarterly sales that was 12.5% above estimates in the fiscal year preceding that. "I don't think investors expectations are very high as we go into it (results)," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sayantani Ghosh)

[17]

Nvidia to have final say on strong earnings season for Big Tech

Nvidia faces a crucial earnings test after a significant rally fueled by strong AI spending commitments from major customers and new demand from the Middle East. Investors are closely watching the supply of Blackwell chips, profit margins, and the impact of US export restrictions to China.Nvidia Corp. faces the final test of an earnings season-driven rally that has sent its shares up more than 40% from an April low. The world's most valuable chipmaker reports Wednesday after market close -- the last of the Big Tech cohort to do so. Results from Microsoft Corp., Meta Platforms Inc. and others showed that outlooks remain mostly intact despite uncertainty caused by President Donald Trump's shifting tariff plans. The reports, along with cooling trade tensions, have helped fuel a rebound in technology stocks that were at the heart of last month's S&P 500 rout. "Tech results have generally been positive, and in some cases, exceptional," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. "I think continued strength in Nvidia will support the overall tech trend." Nvidia shares have soared as its biggest customers pledge to keep spending heavily on equipment for artificial intelligence computing and as new buyers emerge from governments in the Middle East. The stock remains down 9% from its January peak. The focus in the firm's first-quarter earnings report will be the supply of computer systems based on its new Blackwell chips, which faced manufacturing hiccups that hampered sales in the fourth quarter amid heavy demand. The Santa Clara, California-based company is projected to deliver around $19 billion in net income on revenue of $43 billion in the first quarter, up 31% and 66%, respectively, from the same period a year ago. Another thing investors will be watching closely is profit margins. In February, Nvidia said higher costs associated with the ramp up of Blackwell production would weigh on gross margins in the first quarter. Gross margins should return to the "mid-70s" by the end of the year from a projection of roughly 71% in the first quarter, Chief Financial Officer Colette Kress said at the time. "We did see a slowdown in margins last quarter and if we see them shrink again, that could bring the stock down," said Andrew Rocco, a stock strategist at Zacks Investment Research. "I don't think we'll see a huge surprise with this report one way or the other but there is a risk with the outlook." The earnings report has the potential to be complicated owing to US export restrictions of advanced semiconductors to China aimed at slowing the country's technological progress. Last month, Nvidia wrote off about $5.5 billion in inventory of chips designed explicitly to comply with previous US curbs. Chief Executive Officer Jensen Huang has criticised the US policies, which he said will cede a market that could be worth $50 billion in 2026 to Chinese rivals. Wall Street estimates appear to vary widely on the impact of the restrictions, creating the potential for a "messy" quarter, Morgan Stanley analysts led by Joseph Moore wrote in a research note published Tuesday. Nvidia and other technology giants were among the biggest decliners in last month's rout that sent the S&P 500 to the brink of a bear market. Many of the stocks have recouped much of the losses after Trump temporarily paused the stiffest levies and earnings showed demand remains intact. The Nasdaq 100 Index is outperforming the S&P 500 since the reporting cycle kicked off in mid-April. This earnings season has shown that the biggest buyers of AI computing gear plan to keep plowing money into capital spending, a boon for Nvidia and other makers of computing hardware. Microsoft and Alphabet pledged to spend even more next year, while Meta raised its forecast for capital expenditures in 2025. "It is remarkable how much we've almost come full circle in a few weeks," said Rob Almeida, global investment strategist at MFS Investment Management. "The fact that hyperscalers still think they can't afford to not invest is a pretty strong signal for their intentions over the next four quarters." Despite the rebound in Nvidia shares, the stock's valuation relative to anticipated earnings remains at a discount. Nvidia is priced at 29 times profits projected over the next 12 months, compared with a five-year average of 40, according to data compiled by Bloomberg. The Nasdaq 100 trades around 26 times projected profits. For Krishna Chintalapalli, a portfolio manager at Parnassus Investments, the attraction to Nvidia as the biggest beneficiary of AI spending remains strong. "I haven't seen anything in the past three months that would suggest the story has dramatically changed," Chintalapalli said. "While China is a factor, the Middle East deals suggest broad-based demand for Nvidia chips beyond the US and China."

[18]

Nvidia to report quarterly results on Wednesday -- here's what investors should watch for

Nvidia, the artificial intelligence chip leader and second-most valuable company in the world, will report its fiscal first-quarter earnings after markets close Wednesday, and analysts are optimistic about the company with strong predictions, as per a report. Wall Street is predicting a record quarter driven by massive demand for artificial intelligence infrastructure, according to Investopedia. On average, analysts project Nvidia to generate $43.38 billion in revenue, up 66% year over year, as per the report. Adjusted net income is predicted to reach $21.29 billion, or 87 cents per share, from $15.24 billion, or 61 cents per share, in the same quarter last year, reported Investopedia. Wedbush analysts explained that Nvidia is benefiting from big expenditures on AI infrastructure by the largest players in the tech industry, like Alphabet, Meta, Amazon, Microsoft, and Apple, as per the report. Hyperscalers are trying to scale up their AI capacity, and most of that expenditure ends up directly in Nvidia's leading-edge chips driving next-generation data centres, according to Investopedia. ALSO READ: Elon Musk is back -- and so is Tesla: Dan Ives sets huge stock price target for the EV maker, here's the rate The analysts highlighted that "spending on AI in particular ends up flowing to [Nvidia] which supplies a disproportionate amount of the AI server value," as quoted in the report. However, analysts may ask Nvidia CEO Jensen Huang about sales to China as the US presdient Donald Trum's administration earlier this year imposed even tighter export controls for China, as per Investopedia. While, the chipmaker has already warned of a $5.5 billion loss due to restrictions on its H20 chip, and the CEO has reportedly described the export curbs as a policy "failure", as it is helping China to increase development of its own AI chips, according to the report. As per Investopedia, Oppenheimer analysts are anticipating that the impact of the US export restrictions would be relatively modest. The analysts wrote that, "We see upside ... despite the loss of H20 sales to China," and highlighted that the country now makes up just 5% of Nvidia's total sales, reported Investopedia. ALSO READ: Gold to reach $8,900 by 2029? A startling report says so -- here's what investors should keep in mind Meanwhile, both Wedbush and Oppenheimer have maintained "outperform" ratings for Nvidia stock, and have projected price targets of $175, as per the report. Out of the 18 analysts monitored by Visible Alpha, 16 have a "buy" rating for Nvidia stock, while two have "hold" ratings, as per Investopedia. Their consensus price target close to $164 indicates that it is around 25% upside from Friday's closing price, according to the report. When is Nvidia reporting earnings? After the market closes on Wednesday. How much revenue is Nvidia expected to make? Around $43.38 billion for the quarter, up 66% year over year, as per Investopedia.

[19]

Wccftech

Piper Sandler Warns Of The "Last Wave Of Negative News" Ahead Of NVIDIA's Pivotal Q1'25 Earnings

This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy. NVIDIA shares have been firmly pegged on a dizzying roller-coaster ever since DeepSeek released its R1 model back in January, having contended with peak AI fears, a full-fledged global war and the ensuing rapid de-escalation, and the fallout from the ongoing decoupling between the US and China. Yet, NVIDIA seems to have emerged from these Sisyphean obstructions relatively unscathed, and is on the cusp of clearing its last remaining negative catalysts for the year, as per a new investment note from Piper Sandler. To wit, Piper Sandler analyst Harsh Kumar has reiterated an 'Overweight' rating and $150 share price target for NVIDIA, while noting: "All in all, we think that NVDA is poised to be flat to down into the print this week. We think that April quarter is poised for a miss in revenues largely from macro uncertainty and from the H20 ban." For the benefit of those who might not be aware, the Trump administration recently imposed licensing requirements on NVIDIA's China-specific H20 GPUs, which is expected to translate to a $5.5 billion inventory-related charge in Q1. As per an estimation by Susquehanna analysts, these licensing requirements cost NVIDIA $1 billion in China-related sales over the last three weeks of the company's April-ending quarter. For the rest of the year, these lost sales are likely to amount to $3.5 billion per quarter. What's more, the H20-related write-downs might depress NVIDIA's margins by 11 percentage points to 67.7 percent in Q1, as per an analysis by Wedbush. Last week, NVIDIA's CEO Jensen Huang declared that his company had walked away from $15 billion in potential annual sales in China following the imposition of licensing requirements. Concurrently, Huang predicted that the market for AI GPUs in China would swell to $50 billion in 2026. Of course, NVIDIA has been working on a China-specific, watered-down version of its Blackwell GPUs to comply with existing US export controls. However, given Washington's mercurial temperament towards all things China-related, the world's second-largest economy remains a persistent point of concern for NVIDIA. Coming back, Piper Sandler's Harsh Kumar believes NVIDIA's new China-specific Blackwell GPU will only launch in the latter half of its July-ending quarter. Kumar also believes that the factors responsible for NVIDIA's underperformance in Q1 are largely "outside" its control. The analyst goes on to note: "Despite this, we see a strong back half of the year given HPC capex coming on strong coupled with macro forces improving driven by sovereign investments following the announcements of several large deals over recent weeks." Kumar ends his note with solid advice: "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year." Of course, while Piper Sandler appears cautious heading into NVIDIA's Q1 earnings print on Wednesday, Lynx Equity is anything but, boldly declaring that the stock could break out to new highs. "After a couple of quarters of inline results, we think NVDA has the potential to provide upside to muted investor expectations." Lynx Equity also took pains to note the resurgence of CoWoS capacity build at TSMC, which strongly suggests recovery in NVIDIA's supply chain.

[20]

NVIDIA Q1 Earnings Preview: Analyst Cautions On Macro Uncertainty, China Restrictions - 'Stay Long The Stock' - NVIDIA (NASDAQ:NVDA)

All eyes turn to NVIDIA Corporation NVDA and the company's AI dominance, new products and questions for the China market when the company reports first-quarter financial results Wednesday after market close. Here are the analyst earnings estimates, what experts are saying ahead of the report and key items to watch. Earnings Estimates: Analysts expect Nvidia to report first-quarter revenue of $43.54 billion, up from $26.04 billion in last year's first quarter, according to data from Benzinga Pro. The revenue estimate would be a company record, beating the $39.33 billion reported in the fourth quarter. Nvidia has beaten analyst estimates for revenue in 10 straight quarters. Analysts expect Nvidia to report first-quarter earnings per share of 88 cents, up from 61 cents per share in last year's first quarter. The company has beaten analyst estimates for earnings per share in nine straight quarters. Read Also: Nvidia Earnings On Deck: Can AI Darling Beat The Street's High Bar Amid China Headwinds? What Experts Are Saying: Nvidia stock could be flat to down heading into the earnings report due to macro uncertainty and a ban on the H20 AI chip in China, Piper Sandler analyst Harsh Kumar said in a new investor note ahead of Q1 results. "The new re-spun China chip will likely be commercialized in the late part of the July quarter, which could also impact July's guide," he said, reiterating an Overweight rating and $150 price target on Nvidia. Kumar said most of the factors that could hurt Nvidia's first quarter are outside the company's control. The analyst sees a strong back half of the year coming for Nvidia with macro forces improving. "We advise investors to weather the uncertainty and stay long the stock as this is likely largely the last wave of negative news for NVDA this year." Freedom Capital Markets Chief Global Strategist Jay Woods said there are three main things investors will be watching and listening for in Nvidia's report. Woods called Nvidia "the poster child for all that is AI." Woods said the three things that will be most watched are sales of the Blackwell chip, the export restrictions on China, and guidance. "Government restrictions have limited Nvidia's ability to export certain AI chips, like the H20, to China, potentially affecting revenue," Woods said in his weekly newsletter. The market strategist said investors will be looking at Nvidia's guidance to see how the giant can navigate this setback, including potential new, compliant chip variants for the Chinese market. After a history of raising projections for future earnings, Woods questions if the trend can continue given the growth concerns, global competition, and inflation concerns Nvidia faces. Here are other recent analyst ratings on Nvidia and their price targets: Wedbush: Reiterated Outperform rating, $175 price target Bank of America: Maintained Buy rating, raised price target from $150 to $160 UBS: Maintained Buy rating, lowered price target from $180 to $175 Key Items to Watch: Nvidia has shown huge year-over-year and quarter-over-quarter growth in recent years. With another record quarter predicted by analysts, guidance will become increasingly important. The company posted a 12% quarter-over-quarter sales increase in the fourth quarter, with sales up 78% year-over-year. Given the tougher comps, triple-digit growth is likely gone, and eventually, this growth forecast could continue to fall. Data Center segment revenue hit another record in the fourth quarter, with $35.6 billion, up 93% year over year. The fourth quarter saw Data Center carry the company with Gaming & AI PC segment revenue down 11% year-over-year and Professional Visualization revenue up 10% year-over-year. The company's automotive segment saw strong overall year-over-year growth of 103% in the quarter, but it was the smallest segment by revenue ($570 million). Another area to watch could be any talk about competition. Chip competitor AMD recently unveiled the Radeon RX 9060 XT and Radeon AI Pro R9700 graphics cards. The new graphics cards will bring AI capabilities to workstations and gamers worldwide and increase AMD's competition with Nvidia. Tech reviewer Tom's Guide said the RX 9060 XT's release is a "direct shot" at Nvidia's RTX 5060. The reviewer believes AMD's product could "hit the bullseye" in the competitive race. While Nvidia likely won't comment on the competition, it could provide keywords and highlight how its products are the best on the market. Another area to watch with Nvidia's stock report will be if other peer companies go higher or lower on the news. Nvidia's post-earnings move will also have a large impact on several of the most-watched stock market indexes and ETFs. Nvidia is the second-largest holding of the SPDR S&P 500 ETF Trust SPY, with a 6.5% weighting. A sharp decline in Nvidia's stock price due to guidance could send the overall S&P 500 and ETFs lower on the week. Nvidia is the second-largest holding of the Invesco QQQ Trust QQQ, with an 8.3% weighting. The stock is also a member of the Dow Jones Industrial Average, but due to the index being price-weighted, it makes up a smaller percentage and holding in ETFs, like being the 23rd largest holding in the SPDR Dow Jones Industrial Average ETF DIA and 1.9% of assets. NVDA Price Action: Nvidia stock was up 3.2% to $135.44 on Tuesday, versus a 52-week trading range of $86.63 to $153.13. However, it is down 2.2% year-to-date in 2025, while shares have increased over 18% in the last year. Read Next: Does Jensen Huang Check Nvidia Stock Price Daily? Photo: Shutterstock NVDANVIDIA Corp$135.102.91%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum75.06Growth98.78Quality94.11Value6.39Price TrendShortMediumLongOverviewDIASPDR Dow Jones Industrial Average ETF$423.391.70%QQQInvesco QQQ Trust, Series 1$520.412.19%SPYSPDR S&P 500$590.411.95%Market News and Data brought to you by Benzinga APIs

[21]

A Peek at NVIDIA's Future Earnings - NVIDIA (NASDAQ:NVDA)

NVIDIA NVDA will release its quarterly earnings report on Wednesday, 2025-05-28. Here's a brief overview for investors ahead of the announcement. Analysts anticipate NVIDIA to report an earnings per share (EPS) of $0.93. The market awaits NVIDIA's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter. It's important for new investors to understand that guidance can be a significant driver of stock prices. Earnings Track Record During the last quarter, the company reported an EPS beat by $0.05, leading to a 8.48% drop in the share price on the subsequent day. Here's a look at NVIDIA's past performance and the resulting price change: Market Performance of NVIDIA's Stock Shares of NVIDIA were trading at $131.29 as of May 26. Over the last 52-week period, shares are up 16.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. Insights Shared by Analysts on NVIDIA For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on NVIDIA. Analysts have given NVIDIA a total of 35 ratings, with the consensus rating being Buy. The average one-year price target is $170.43, indicating a potential 29.81% upside. Understanding Analyst Ratings Among Peers The below comparison of the analyst ratings and average 1-year price targets of Broadcom, Advanced Micro Devices and Qualcomm, three prominent players in the industry, gives insights for their relative performance expectations and market positioning. Analysts currently favor an Buy trajectory for Broadcom, with an average 1-year price target of $250.92, suggesting a potential 91.12% upside. Analysts currently favor an Outperform trajectory for Advanced Micro Devices, with an average 1-year price target of $127.96, suggesting a potential 2.54% downside. Analysts currently favor an Neutral trajectory for Qualcomm, with an average 1-year price target of $174.82, suggesting a potential 33.16% upside. Peer Metrics Summary In the peer analysis summary, key metrics for Broadcom, Advanced Micro Devices and Qualcomm are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance. Key Takeaway: NVIDIA ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity. Delving into NVIDIA's Background Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads. NVIDIA: Financial Performance Dissected Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position. Revenue Growth: Over the 3 months period, NVIDIA showcased positive performance, achieving a revenue growth rate of 77.94% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector. Net Margin: NVIDIA's net margin excels beyond industry benchmarks, reaching 56.17%. This signifies efficient cost management and strong financial health. Return on Equity (ROE): NVIDIA's ROE excels beyond industry benchmarks, reaching 30.42%. This signifies robust financial management and efficient use of shareholder equity capital. Return on Assets (ROA): NVIDIA's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 21.28%, the company showcases efficient use of assets and strong financial health. Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13. To track all earnings releases for NVIDIA visit their earnings calendar on our site. This article was generated by Benzinga's automated content engine and reviewed by an editor. NVDANVIDIA Corp$134.062.11%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum75.06Growth98.78Quality94.11Value6.39Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

[22]

Nvidia May Beat Q1, But Q2 Sales Could Fall To $41 Billion On China Ban, BofA Securities Analyst Warns - NVIDIA (NASDAQ:NVDA)

BofA Securities analyst Vivek Arya reiterated a Buy rating on NVIDIA Corp NVDA with a $160 price target on Thursday. Arya updated his fiscal first quarter outlook following supply chain insights, investor discussions and Nvidia's remarks at the recent Computex trade show, particularly concerning the U.S. ban on H20 sales to China. He highlighted a disconnect between Nvidia's stated $15 billion in lost China sales, the revised fiscal 2026 (calendar 2025) sales estimate of $10 billion-$12 billion and the more conservative $3.8 billion in consensus revisions. Depending on China shipment timing, this could amplify to a $4 billion-$5 billion headwind in the fiscal second quarter. Gross margin recovery remains a key focus. Arya looks for management confidence in restoring margins to the mid-70s in the second half, driven by Blackwell ramp-up and rack-level product yields. Also Read: Emergence Of UALink As A Viable Alternative Could Challenge Nvidia's Dominance, Analyst Asserts Despite these near-term headwinds, Arya considers Nvidia as a top sector pick, citing its unique position in global AI deployment and potential China sales rebound through redesigned, compliant products later in the year. For the fiscal first quarter, Arya expects a modest beat versus Nvidia's $43 billion guidance and consensus of $43.4 billion. However, the $5.5 billion H20-related inventory write-off may pull gross margins to ~58%, below the 71% guide. He forecasts adjusted EPS at 74 cents, under the consensus of 88 cents. No material H20 impact is expected in the first quarter. Fiscal second quarter consensus has dropped from $48 billion (pre H20 ban) to $46.4 billion, with investor expectations closer to $45 billion-$46 billion. Current models only reflect a ~$2 billion H20 headwind, which may be optimistic if early-year sales were front-loaded. By comparison, Advanced Micro Devices Inc. AMD estimated 47% of its $1.5 billion China impact would hit in the second quarter. Applying that ratio to Nvidia's $15 billion China headwind implies a $7 billion second quarter hit, potentially dropping sales guidance to $41 billion, well below consensus. This would imply an adjusted EPS of ~85 cents, 16% below estimates. Looking further ahead, Arya estimates the $15 billion China sales headwind could bring fiscal 2026 revenue down to $190 billion, 6% below consensus, and adjusted EPS to $3.93, 10% below the current $4.38, or 14% below the pre-ban $4.56 consensus. A potential upside could from a faster non-China Blackwell ramp as Nvidia accelerates testing of its move back to "Bianca" compute boards from the prior decision to move to "Cordelia" boards for GB300 GPU. NVDA Price Action: Nvidia stock is trading lower by 0.76% to $131.82 at publication on Friday. Read Next: Nvidia Powers Big Gains For Quanta, Pegatron As AI Demand Explodes Photo: Shutterstock NVDANVIDIA Corp$131.80-0.77%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum82.17Growth98.78Quality93.95Value6.61Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$110.45-0.23%Market News and Data brought to you by Benzinga APIs

[23]

Nvidia Earnings Loom While AMD AI Could Change The Narrative - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

Nvidia Corp NVDA may still be the emperor of AI's training stack, but Advanced Micro Devices Inc AMD is making a compelling case to become the infrastructure king of everything else. With Nvidia set to report first-quarter earnings on Wednesday, Wall Street expects fireworks - an EPS of 88 cents per share and revenue of $43.54 billion. The stock has surged 20.75% in the past month, and despite being slightly under its eight-day simple moving average (SMA), it's flashing strong technicals. Chart created using Benzinga Pro NVDA stock is trading well above its 20, 50, and 200-day SMAs. With a MACD (moving average convergence/divergence) of 6.29 and RSI (relative strength index) nearing overbought at 63.8, the bulls are clearly in control. Analysts remain solidly bullish. Recent ratings from Wedbush, BofA, and UBS peg an average price target of $170 -- implying nearly 30% upside from current levels. NVDA isn't just the leader; it's still the benchmark. Read Also: After Jensen Huang Criticized US Export Curbs, Nvidia Set To Launch Cheaper Blackwell AI Chip For China Amid Market Share Slide: Report AMD's Inference-Focused Strategy Finds Tailwinds But AMD isn't trying to be Nvidia anymore, which might be the smartest move in the AI arms race. Chart created using Benzinga Pro While AMD has lagged over the past year, down 35.72%, the stock has bounced back 14.44% in the last month. Its recent technicals are mixed -- it's trading below its eight-day SMA but above the 20 and 50-day SMAs. The 200-day still looms overhead, yet with a MACD of 4.30 and RSI of 57.67, buying pressure is building. And then there's the narrative shift. AI Infrastructure Is Evolving - And So Are Investor Preferences As Shay Boloor puts it, AMD isn't chasing Nvidia's crown -- it's building a different kingdom. While Nvidia owns training, AMD is positioning for AI's deployment phase: edge computing, sovereign AI, cost-effective inference and modular stacks. Its MI300X chips and ROCm platform aren't trying to out-CUDA CUDA -- they're solving problems CUDA wasn't built for. The $10 billion Humain deal? That's about control, not hype. It's a bold pivot from playing catch-up to reshaping the battlefield. In a world where AI infrastructure is becoming political and every enterprise wants sovereignty, AMD's open, modular approach isn't just a Plan B. It might be Plan A for hyperscalers and governments that don't want to be locked into Nvidia's stack. NVDA might crush this quarter -- again. But as AI evolves from a centralized boom to a decentralized wave, the market may start asking a different question: Not "Can AMD catch Nvidia?" But "Did we underestimate what AMD is becoming?" Read Next: $600B AI Opportunity: Nvidia's 18,000-Chip Deal With Saudi Arabia's Humain Puts Middle East 'Front Of The Line,' Says Wedbush's Dan Ives Photo: Shutterstock AMDAdvanced Micro Devices Inc$113.843.20%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum20.41Growth97.01Quality72.56Value17.03Price TrendShortMediumLongOverviewNVDANVIDIA Corp$134.562.49%Market News and Data brought to you by Benzinga APIs

[24]

What's Going On With Nvidia Shares Today? - NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA shares are trading higher Wednesday as investors brace for the company's first-quarter earnings report after market close. What To Know: The slight move upward reflects cautious optimism, with the stock under close watch given Nvidia's central role in the AI chip market and its weighting in major indices. Analysts expect Nvidia to post record quarterly revenue of $43.54 billion, an increase from $26.04 billion in the same quarter last year. Analysts expect adjusted earnings per share of 88 cents, up from 61 cents year-over-year. Nvidia has beaten revenue estimates for 10 straight quarters and earnings estimates for the last nine, setting high expectations for this week's results. What Analysts Are Saying: Despite these strong historical performances, some analysts are warning of headwinds. Piper Sandler's Harsh Kumar pointed to macroeconomic uncertainty and ongoing export restrictions to China, particularly concerning the H20 AI chip. Kumar noted that a revamped chip for the Chinese market is unlikely to be commercialized until later in the July quarter, potentially affecting the company's near-term guidance. Still, he maintained an Overweight rating and a $150 price target, advising investors to remain long-term bullish. Freedom Capital's Jay Woods emphasized three focal points for the upcoming report: sales of the Blackwell chip, updates on the China export situation and future guidance. Nvidia's ability to navigate regulatory challenges and maintain its dominant position in AI computing will be critical to investor sentiment going forward. While revenue from Nvidia's Data Center segment hit a record $35.6 billion in fourth-quarter, questions remain about whether the growth rate can be sustained, especially as segments like Gaming and AI PC saw year-over-year declines. Nvidia's Automotive division posted over 100% growth but remains small in terms of total revenue contribution. The broader market impact of Nvidia's earnings will also be significant. The stock is among the largest holdings in both the S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), meaning a substantial move in NVDA could ripple across major indexes. Nvidia shares have risen more than 18% over the past year but are down 2.2% year-to-date. Investors will be closely watching whether Nvidia can maintain its momentum or if concerns about regulation, competition from AMD and a potential slowdown in AI-driven growth begin to weigh more heavily. NVDA Price Action: Nvidia shares were up 0.97% at $136.82 at the time of writing, according to Benzinga Pro. Read Next: US Government To Hold Strategic Control Over US Steel In $14.9 Billion Nippon Deal, David McCormick Says Image Via Shutterstock. NVDANVIDIA Corp$136.760.93%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum73.99Growth98.75Quality93.99Value6.41Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

[25]

Nvidia Earnings On Deck: Can AI Darling Beat The Street's High Bar Amid China Headwinds? - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

All eyes will be on Nvidia Corp. NVDA this Wednesday after market close, with Wall Street intensely focused on whether the AI-chip giant can justify its rise amid rising geopolitical and regulatory headwinds, especially from President Donald Trump's recent China tariffs and restrictions. For the fiscal quarter ending April 30, analysts expect earnings per share of $0.88, a 43% increase from the prior year, according to Benzinga Pro. Revenue is projected at $43.4 billion, up 65% from a year ago -- a staggering figure that reflects sustained demand for Nvidia's AI accelerators and data center products. Yet not all is rosy under the surface. Bank of America analyst Vivek Arya sees potential cracks forming beneath the headline numbers. Strong Top-Line Growth Expected, But EPS May Miss "We look for modest Q1 beat vs. the $43 billion guide and $43.4 consensus," Arya said in a recent note. Yet, the expert warned that Nvidia's gross margins could fall sharply due to a $5.5 billion inventory write-off tied to U.S. government restrictions on high-end H20 chips sold to China. That could drag gross margins from the guided 71% to just 58%, pushing pro forma EPS closer to $0.74, nearly 16% below consensus. Read also: Nvidia CEO Jensen Huang Slams US Chip Export Curbs As 'Exactly Wrong For America,' Praises Chinese AI Researchers As 'World-Class' How Bad Could Q2 Guidance Get? Aside from first-quarter figures, the real market-moving factor will likely be Nvidia's second-quarter outlook, where downside risk appears elevated. Analyst consensus has already pulled Q2 revenue forecasts down to $46.4 billion from $48 billion before the H20 ban. But Arya said this may still be too optimistic. Applying a similar 47% hit seen by competitor Advanced Micro Devices Inc. AMD from China's chip restrictions, Arya believes Nvidia's guidance could drop as low as $41 billion -- a figure that would shock investors and imply a pro forma EPS of just $0.85. Massive $15 Billion China Hit To FY26 The long-term impact of the H20 ban may be even more severe. Nvidia itself has disclosed that restrictions could reduce fiscal 2026 sales by $15 billion, far higher than the $3.8 billion consensus expectation and even Bank of America's prior $12 billion estimate. If this scenario plays out, EPS could fall to $3.93 for FY26, 10% below the current consensus of $4.38 and 14% below pre-ban forecasts of $4.56. Despite the looming risks, Bank of America maintains a "Buy" rating on Nvidia with a 12-month $160 price objective, suggesting a 22% upside from current levels. Read now: After Jensen Huang Criticized US Export Curbs, Nvidia Set To Launch Cheaper Blackwell AI Chip For China Amid Market Share Slide: Report AMDAdvanced Micro Devices Inc $110.30-0.37% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 20.57 Growth 97.03 Quality 72.80 Value 16.53 Price Trend Short Medium Long Overview NVDANVIDIA Corp $131.17-1.25% Market News and Data brought to you by Benzinga APIs

[26]

Nvidia To Be Hit By China Chip Export Curbs Or Deliver Q2 Guidance Surprise After Middle East Deal? Here's What Charts Show Ahead Of Q1 Results - NVIDIA (NASDAQ:NVDA), Oracle (NYSE:ORCL)

While the export restrictions on Nvidia Corp.'s NVDA H20 AI chip have dented its earnings estimates for the first quarter, the recently signed contracts in the Middle East could surprise the second quarter guidance on the upside. What Happened: According to T3 Live, Nvidia's earnings estimates fell for the first time in years after the company took a $5.5 billion hit because of export restrictions on the H20 AI chip. However, President Donald Trump's dealmaking rampage in the Middle East during the Saudi-U.S. Investment Forum, with a major emphasis on AI, could bring a positive change to its second-quarter estimates. These deals include the sale of 18,000 Blackwell chips to Saudi Arabia's Humain. Additionally, the U.S. is partnering with the United Arab Emirates to build a major AI campus, and Nvidia is joining the party. Also, Oracle Corp. ORCL will spend $40 billion on Nvidia chips for OpenAI's new Texas-based data center. "So could NVIDIA deliver monster guidance on its Wednesday earnings report It seems possible," the post stated further. However, according to Bank of America analyst Vivek Arya, Nvidia's gross margins could drop due to a $5.5 billion inventory write-off from U.S. restrictions on high-end H20 chip sales to China. This could slash gross margins from 71% to 58%, pushing pro forma EPS down to $0.74, 16% below consensus. He highlights that Nvidia is itself estimating a $15 billion reduction in FY26 sales due to the H20 ban, significantly higher than analyst expectations. Despite these risks, Bank of America maintains a "Buy" rating on Nvidia with a $160 price target, suggesting a 22% upside. See Also: Unprecedented Demand For Nvidia's GB200 Drives Accelerated Production: 'Taiwan Engineers Are Working Incredibly Hard,' Says Expert Get StartedEarn 7.2% -- No Matter What the Fed Does Markets expect rate cuts -- but your earnings don't have to suffer. Lock in 7.2% until 2028 from ten individual bonds. Get Started Why It Matters: According to the technical analysis of its simple daily moving averages, Nvidia's closing price of $131.29 apiece as of Friday was above its 20-, 50-, and 200-day moving averages. The relative strength index at 63 was still neutral but approaching the overbought mark of 70. Whereas, its momentum indicator, the MACD line, was positive as its 12-day exponential moving average was above its 26-day EMA, indicating a bullish trend. According to Benzinga Pro, analysts expect earnings per share of $0.88 for the first quarter, a 43% increase from the prior year, while its revenue is projected at $43.4 billion, up 65% from a year ago. Price Action: Nvidia's shares closed 1.16% lower on Friday. The stock was down 5.08% on a year-to-date basis, and 15.27% higher over a year. In pre-market on Tuesday, the stock was up 2.7% Benzinga Edge Stock Rankings shows that Nvidia had a stronger price trend over the short, medium, and long term. Its momentum ranking was solid, however, its value ranking was poor at the 6.61th percentile. The details of other metrics are available here. The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 1.54% to $588.00, while the QQQ advanced 1.71% to $517.93, according to Benzinga Pro data. Read Next: Quantum Computing Stocks In Focus: Pure Play Vs. Large Caps - Here's A Look At The Valuations Photo courtesy: Jack Hong / Shutterstock.com NVDANVIDIA Corp$134.942.78%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum75.06Growth98.78Quality94.11Value6.39Price TrendShortMediumLongOverviewORCLOracle Corp$159.422.21%QQQInvesco QQQ Trust, Series 1$517.781.68%SPYSPDR S&P 500$587.761.49%Market News and Data brought to you by Benzinga APIs

[27]

Nvidia Q1 Earnings: Stock Bullish But Will H20 Chip Woes Impact? - NVIDIA (NASDAQ:NVDA)

Nvidia Corp NVDA is charging into its first-quarter earnings report on Wednesday with strong technical momentum, but investors might want to buckle up. Wall Street is expecting the company to report 88 cents in earnings on $43.21 billion revenue for the quarter, as it reports after market hours. While the charts are flashing bullish signals, Wall Street is bracing for what could be a messy quarter, driven not by a lack of demand -- but by supply chain snarls tied to China's restrictions and the high-profile H20 chip delay. Read Also: Nvidia's Q1 Earnings Loom, While AMD's Edge AI Bet Could Change The Narrative Nvidia Stock Chart Bullish Ahead Of Q1 Earnings Chart created using Benzinga Pro On the technical front, Nvidia stock looks rock solid. The stock is trading at $135.50, well above its eight-day, 20-day and 50-day simple moving averages (SMAs) -- $134.03, $125.44, and $115.39, respectively. The 200-day SMA also trails at $126.47, further reinforcing the bullish setup for Nvidia stock. The Moving Average Convergence Divergence (MACD) indicator stands at 6.31, suggesting upward momentum remains intact. Meanwhile, the Relative Strength Index (RSI) is at 68.00, inching closer to the overbought territory but still showing healthy buying pressure. Despite these bullish signals, not everyone is convinced the upcoming earnings will sustain Nvidia's rally. Guidance Could Trim By 10% - Says Investment Strategist Stephanie Link, chief investment strategist at Hightower Advisors, is not expecting fireworks. "I don't think it is going to be a catalyst quarter. It's noisy- you have the China restrictions, etc. So, July quarter guidance probably has to come down because of the H20 issue," she warned, estimating the impact could shave off about 10% from outlook expectations. The H20 chip, a modified version of Nvidia's flagship AI hardware designed to comply with U.S. export controls, has hit production snags in China, one of Nvidia's key growth markets. Add in chatter about slower rack production and power supply constraints, and it's clear why sentiment is mixed. Still, Link argues that these are supply, not demand, problems. "They're going to do about $5 in earnings power, this year I would assume," she added, signaling long-term confidence despite short-term turbulence. With Nvidia stock up nearly 25% in the past month, optimism is already baked in. Whether the stock extends its bullish run may hinge on how investors digest potentially weak guidance -- especially if it's seen as a temporary blip rather than a structural concern. Read Next: Nvidia Supplier ASML Loses Over $130 Billion In Market Cap Amid China Export Curbs, Trump Tariff Uncertainty Photo: Shutterstock NVDANVIDIA Corp$136.030.39%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum73.99Growth98.75Quality93.99Value6.41Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

[28]

Nvidia Stock Is Surging Thursday: What's Fueling The Move? - NVIDIA (NASDAQ:NVDA)

NVIDIA Corp NVDA shares are rising Thursday after the company beat expectations for the first quarter, boosted by a continued acceleration of its data center business. Multiple analysts reiterated Buy ratings or lifted price targets following the print. Q1 Earnings: Nvidia reported first-quarter revenue of $44.06 billion, beating analyst estimates of $43.21 billion. The company reported adjusted earnings of 81 cents. Excluding the charges related to restrictions on chip sales to China, adjusted earnings was 96 cents per share, which was stronger than analysts were anticipating, according to Benzinga Pro. Total revenue was up 69% on a year-over-year basis. Here's a breakdown of revenue by segment: Data center revenue: $39.1 billion, up 73% Gaming & AI PC revenue: $3.8 billion, up 42% Professional Visualization revenue: $509 million, up 19% Automotive & Robotics revenue: $567 million, up 72% Nvidia said it will pay its next quarterly cash dividend of one cent per share on July 3 to shareholders of record as of June 11. "Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and NVIDIA stands at the center of this profound transformation," said Jensen Huang, founder and CEO of Nvidia. Check This Out: Tesla's Optimus May Be The First Humanoid Robot To Achieve High Volume And Tech Scale, Says Nvidia CEO Jensen Huang: '... Likely To Be The Next Multi-Trillion Dollar Industry' Guidance: Nvidia forecasted second-quarter revenue of $45 billion, plus or minus 2%, versus Benzinga Pro estimates of $45.78 billion. The company noted that its outlook reflects a loss of approximately $8 billion in H20 revenue due to the export control limitations. Huang stressed the importance of the Chinese market on a conference call following the company's quarterly results. The Nvidia CEO told investors and analysts that whoever wins China will be positioned to lead globally. Analysts React To Q1: Multiple analysts reiterated Buy ratings on Nvidia following the print with some raising price targets ranging from $160 to $200. Wedbush's Dan Ives predicted that Nvidia is on a path to a $4 trillion market cap, eventually reaching $5 trillion as the company benefits from increasing AI spend over the coming years. He noted that the AI chip giant delivered another "robust" quarter with "solid" guidance. Deepwater's Gene Munster said Nvidia's core business is on fire and "off the charts good." He highlighted impressive growth when excluding the impacts of the China chip restrictions. "If you back out the impact of the curbs, YoY revenue growth in April would have been 79% (reported 69%). Guide for July would have been 76% (actual guide with curbs 50%). That fractional decline of revenue growth quarter over quarter off of a much bigger base is impressive, and the latest evidence that the company's growth will be higher for longer," Munster said. NVDA Price Action: Nvidia shares were up 5.55% at $142.34 at the time of publication Thursday, according to Benzinga Pro. Read Next: Nvidia Faces Bipartisan Heat Over Its Shanghai Facility Amid 'Significant' National And Economic Security Threat: Report Photo: Hepha1st0s/Shutterstock. NVDANVIDIA Corp$142.075.39%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum74.09Growth98.75Quality94.27Value6.53Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

[29]

Bank Of America Hikes Nvidia Price Target To $180, Sees Annual Earnings Per Share To Hit $10 - NVIDIA (NASDAQ:NVDA)

Despite delivering a staggering 1,100% return since October 2022, Nvidia Corp NVDA may still have meaningful upside ahead. On Thursday, Bank of America's top semiconductor analyst Vivek Arya reiterated a Buy rating on the stock. He lifted his earnings forecasts and boosted the price target from $160 to $180. This implies a further 30% rally from current levels. Shares climbed 3% to $139 by 2:00 p.m. ET, touching $143.84 intraday -- the highest since February -- as investor confidence grew on the heels of Nvidia's latest earnings report. The Santa Clara, California-based firm highlighted resilient margins and accelerating data center momentum. See Also: Stocks Edge Higher After Court Stifles Trump Tariffs, Nvidia Rallies To 3-Month Highs: What's Driving Markets Thursday? Nvidia's Growth Story Just Got Even Stronger Arya is forecasting long-term earnings power of $10 per share, driven by the company's AI hardware dominance. Arya estimates Nvidia holds 80-85% of the total market for AI data center chips -- a position he describes as "best-in-class in opportunity and execution." The expert upped the earnings forecast for calendar year 2027 to $7.23 per share, up 12%. One of the key reasons for this upgrade is the rapid ramp-up of Nvidia's Blackwell platform. "Blackwell racks are now in full production," Arya said, with major hyperscalers deploying close to 1,000 units per week. Given a $2.5 million-plus average selling price per rack, this points to a quarterly revenue opportunity exceeding $30 billion. When extended across Nvidia's top-tier customers, that could mean over $100 billion in annual revenue potential from just a few hyperscalers. The analyst also noted that China is now "de-risked," as Nvidia's $15 billion in H20 chip sales for the first half of 2025 have already been modeled. That visibility into China demand reduces near-term geopolitical uncertainty, a major concern for investors following tightening U.S. export controls. Another pivotal development is the expected rebound in gross margins, which Arya sees returning to the mid-70% range by the end of 2025. This improvement, he said, is a "sign of improving demand and rack-scale execution," helped in part by networking solutions like NVLink, Spectrum-X and BlueField, which are now widely deployed. Cash Flow Strengthens The Investment Case Arya continues to see Nvidia's fundamentals as uniquely strong. The company's free cash flow margin is hovering around 50%, more than twice the 19% average among the 'Magnificent Seven.' He also underscored Nvidia's compelling valuation, with a price-to-earnings-to-growth ratio of just 0.9 compared to 3.0 for the peer group. According to Arya, Nvidia stands to gain even more from the global AI infrastructure push, especially as capital expenditures extend beyond U.S. tech firms. "AI capex is diversifying from just U.S. clouds to now multiple sovereign deployments," Arya said, pointing to recent developments in Saudi Arabia. Using a broader total addressable market estimate of $450 billion to $500 billion, Arya indicates Nvidia could hit or surpass $10 per share in earnings by 2027 if its current market share holds. What Could Go Wrong? Still, Arya acknowledged several execution risks. The company's plan to launch major new products on an annual cycle -- each October -- could strain its supply chain and internal operations. "Faster product cadence increases execution risks," he said, referencing delays seen during the initial Blackwell rollout. He also flagged that reliable power and infrastructure remain key constraints in AI deployment. "Deployment of data centers with reliable access to high power is as much of a bottleneck as access to chips," Arya said. Last but not least, with AI now a strategic asset in global politics, Nvidia remains vulnerable to regulatory and trade policy risks -- especially involving China and export controls. Now Read: Tesla's Optimus May Be The First Humanoid Robot To Achieve High Volume And Tech Scale, Says Nvidia CEO Jensen Huang: '... Likely To Be The Next Multi-Trillion Dollar Industry' Image: Shutterstock NVDANVIDIA Corp$139.323.35%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum74.09Growth98.75Quality94.27Value6.53Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

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Nvidia Stock Has 'Significant Upside' As AI 'Godfather' Jensen Huang Delivers Another 'Robust Quarter' - NVIDIA (NASDAQ:NVDA)

NVIDIA Corporation NVDA analysts break down the impact of China export restrictions and what it means for the tech giant after the company reported first-quarter financial results and shared the lost revenue opportunity for China. The NVDA Analysts: Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Nvidia and raised the price target from $178 to $200. Needham analyst Quinn Bolton maintained a Buy rating with a $160 price target. Benchmark analyst Cody Acree reiterated a Buy rating with a $190 price target. Wedbush analyst Dan Ives maintained an Outperform rating and $175 price target ahead of results. JPMorgan analyst Harlan Sur reiterated an Overweight rating with a $170 price target. Read Also: Nvidia Stock Is Surging Thursday: What's Fueling The Move? Rosenblatt on NVDA: The tech giant reported a "better than feared" quarter, Cassidy said in a new investor note. The analyst said Blackwell demand shipments could offset the weakness from restricted shipments to China. "We now see China as de-risked with a potential upside coming from a downgraded version of Blackwell, though management did not commit to this product," Cassidy said. The analyst said Nvidia's key message is that AI Factories are a huge growth item equivalent to the past build out of electric power grids or the internet. "Every company and every country are in the process of planning or deploying the use of AI." Needham on NVDA: The lost revenue opportunity from China restrictions was larger than expected, Bolton said in a new investor note. The analyst said Nvidia's guidance came in lower than expected, while gross margins were better than expected. "Export restrictions largely exclude NVIDIA from the China AI market ($50BN TAM), and loss of access to this market could have a material adverse effect on the company's business and benefit foreign competitors," Bolton said. Bolton highlighted that Blackwell is the fastest product ramp in Nvidia history, which helped the data center segment grow revenue by 73% year-over-year in the quarter. "We view both Enterprise and Industrial AI in early stages." Benchmark on NVDA: Acree said in a new investor note that Blackwell's aggressive ramp could help offset investors' fears about China. The analyst said Nvidia stock being up after earnings was likely the right reaction to the results and guidance. "We agree with the market's initial reaction to its results, which once the China charge and associated revenue is netted out, equal a solid beat and raise report," Acree said. Acree said Nvidia reported strength across the AI industry with company's investing in AI infrastructure despite tariff and global macroeconomic concerns. "We believe Wednesday's report answers much of the market's concerns, as Nvidia appears to be growing despite its China issues." Acree said the expectation is that Nvidia will come up with a solution to work around the China restrictions as the Chinese market "is too large and strategically important" for Nvidia to be absent from. "Expect Jensen to do whatever is necessary to re-engage and reclaim its lost opportunity." Wedbush on NVDA: Nvidia and CEO Jensen Huang delivered a strong quarter with "robust numbers," Ives said in a new investor note. "With all the world and markets watching...the Godfather of AI Jensen and Nvidia delivered another robust quarter after the bell handily beating the Street yet again," Ives said. Ives said the company's commentary was positive despite the demand issues from China restrictions. "That should be music to the ears of tech bulls listening to this conference call." The analyst said Nvidia's market capitalization could reach $4 trillion in the future and potentially reach $5 trillion in "the coming years." Ives said the numbers without the China exclusions are "staggering" and show the "massive historic demand" for the AI Revolution. The analyst calls Nvidia's AI chips "the new oil and gold in the world." "This is a very important print and guide for the broader tech world and it shows the AI Revolution is heading into its next gear of growth despite the Trump tariff war playing out." JPMorgan on NVDA: Nvidia's first quarter saw "solid results" despite the China restrictions, Sur said in a new investor note. The analyst said Blackwell shipments will likely ramp higher through the year. "Demand for Blackwell is very strong and will continue to outstrip supply for several quarters," Sur said. Sur said Nvidia is one to two steps ahead of competitors with its platform and ecosystem and this gap could widen with more products over time. "We believe NVIDIA continues to execute across all segments." Sur said the automotive and enterprise segments showed strength in the quarter. NVDA Price Action: Nvidia stock is up 4.8% to $141.28 on Thursday versus a 52-week trading range of $86.63 to $153.13. Nvidia stock is up 1.6% year-to-date in 2025. Read Next: Tesla's Optimus May Be The First Humanoid Robot To Achieve High Volume And Tech Scale, Says Nvidia CEO Jensen Huang: '... Likely To Be The Next Multi-Trillion Dollar Industry' Photo: jamesonwu1972 / Shutterstock.com NVDANVIDIA Corp$141.214.75%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum74.09Growth98.75Quality94.27Value6.53Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

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Should You Buy Nvidia Stock Before May 28? Wall Street Has a Crystal-Clear Answer for Investors. | The Motley Fool

Nvidia (NVDA -1.02%) shares fell sharply earlier this year as investors worried about how tariffs and export curbs would impact revenue. However, the stock recouped its losses in May as hyperscale cloud companies raised their capital spending forecasts and the Trump administration revoked the Biden-era AI Diffusion Rule. However, there is another inflection point on the horizon. Nvidia will announce its financial results for the first quarter of fiscal 2026 after the market closes on Wednesday, May 28. The stock has often been volatile after earnings events. For instance, it declined by more than 8% following the previous report. Nevertheless, Wall Street has clear advice for investors: Among the 71 analysts who follow Nvidia, the stock has a consensus rating of "buy" and a median target price of $160 per share. That implies 22% upside from the current share price of $131. Here's what investors should know about Nvidia. Nvidia specializes in accelerated computing, a discipline that pairs specialized hardware and software to speed up complex data center workloads, such as artificial intelligence (AI). The company is best known for its graphics processing units (GPUs), chips often referred to as AI accelerators. According to IoT Analytics, Nvidia has more than 90% market share in data center GPUs. However, the company is truly formidable because it supplements its GPUs with adjacent hardware, like CPUs, interconnects, and networking gear, such that it essentially builds entire data centers. CEO Jensen Huang says the vertically integrated strategy lets Nvidia build systems with the lowest total cost of ownership. Additionally, Nvidia has spent about two decades building its CUDA software platform, which now includes hundreds of code libraries, frameworks, and pretrained models that help developers build AI applications across a broad range of domains. That includes video analytics, speech recognition, recommendation engines, and customer service agents. Importantly, while generative AI capabilities have recently been the driving force behind demand for Nvidia's accelerated computing products, the company is well positioned to maintain its leadership through the next phase of the AI revolution: self-driving cars and autonomous robots. "Physical AI and robotics will bring about the next industrial revolution," according to Jensen Huang. Nvidia Drive and Nvidia Isaac are platforms that support the development of self-driving cars and autonomous robots, respectively. Earlier this year, Jensen Huang said, "We build technology that almost every self-driving car company uses." That list includes Alphabet's Waymo and Tesla. Similarly, Amazon uses Nvidia Isaac to train, simulate, and manage its warehouse robots. Importantly, Nvidia debuted GR00T N1.5 earlier this month, a customizable foundation model for humanoid reasoning. CFRA analyst Angelo Zino believes GR00T will strengthen Nvidia's position in the AI ecosystem. He also believes the recent decision to open its NVLink interconnect technology -- which turns disparate chips into a single accelerator -- to custom chipmakers like Marvell and MediaTek will create new opportunities for revenue growth. Nvidia will report its financial results for the first quarter of fiscal 2026 on Wednesday, May 28. The company guided for 53% revenue growth and 49% non-GAAP (non-generally accepted accounting principles) earnings growth. But several analysts have revised their estimates lower in the last 90 days due to concerns about export restrictions and tariffs. The Wall Street consensus now says Nvidia's earnings will increase 44%. Importantly, beating that number does not necessarily guarantee a positive reaction from the market. Nvidia exceeded the top- and bottom-line estimates in the fourth quarter, but the stock fell more than 8% the next day. Investors should expect similar volatility this time around. At present, pricing data from the options market implies a 6-point swing, meaning the market expects the share price to land between $125 and $140. Investors should either listen to the conference call or read a transcript of the event. Jensen Huang will almost certainly discuss important issues like export restrictions related to the Chinese market, recent deals in the Saudi Arabian market, and what the company expects concerning the semiconductor tariffs that President Donald Trump has yet to finalize. So, returning to my original question: Should you buy Nvidia before May 28? Any investor who plans to hold the stock for several years can buy a small position today. If the price declines post-earnings, consider adding a few more shares. But investors looking for a quick profit should avoid the stock. There are too many unknowns to be sure of a positive reaction.

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Buying Nvidia Stock Before May 28 Could Be Your Last Chance to Get This Magnificent Artificial Intelligence (AI) Stock on the Cheap | The Motley Fool

Though Nvidia (NVDA -1.02%) stock has been under pressure so far in 2025 owing to several factors outside of the company's control, such as tariffs and concerns that spending on artificial intelligence (AI) hardware could slow down thanks to the arrival of cost-efficient models, recent stock price action suggests that the company is making a solid comeback. Shares of the chip designer have shot up by 28% in the past month. The good part is that Nvidia is still trading at an attractive valuation even after its recent surge. However, with the company set to release its fiscal 2026 first-quarter results after the market closes on May 28, it could become more expensive to buy for investors who are sitting on the sidelines. Let's see why that may be the case. Nvidia's guidance for the first quarter of fiscal 2026 (which ended on April 27) calls for $43 billion in revenue at the midpoint of its guidance range. That would translate into a year-over-year increase of 65%. However, there is a good chance that Nvidia may be able to coast past that expectation thanks to the tremendous demand for its AI graphics processing units (GPUs). There have been concerns that the demand for Nvidia's AI GPUs could wane because of the tariff-fueled turmoil, as well as a potential drop in AI spending because of the emergence of DeepSeek's cost-effective but competent reasoning model. Yet recent chatter indicates that the actual story might turn out to be different. For instance, Reuters reported last month that Chinese firms have placed orders for $16 billion worth of Nvidia's H20 GPUs in the first quarter of calendar 2025. The orders for this chip have reportedly surged following the increase in demand for cost-efficient AI models in the wake of DeepSeek's breakthrough. Chinese tech giants such as Alibaba, Tencent, and ByteDance are said to be stocking up on Nvidia's chips, anticipating a shortage in their supply because of export restrictions imposed on the chipmaker. Nvidia's revenue from China stood at $17 billion in all of fiscal 2025. So, the above estimate of $16 billion indicates that it may have done a year's worth of business with Chinese customers in just a quarter. Of course, you may be wondering if the previous U.S. administration's decision to ban sales of Nvidia's China-specific H20 processors is going to dent the company's outlook by costing billions of dollars in sales. However, the Trump administration plans to modify and pull back some of the previous regime's export curbs, and that could turn out to be a tailwind for Nvidia's Chinese business. At the same time, investors should note that Nvidia has reportedly modified its H20 AI chip to meet the restrictions and will release the updated version in July. Nvidia is said to have modified its chips in the past to ensure that it remains on the right side of the export restrictions that it faces from time to time, and that has allowed the company to remain a key player in the Chinese AI market. So, while Chinese-related business is likely to help Nvidia deliver stronger-than-expected results for the previous quarter, strong AI spending in the U.S. could give its outlook a big boost. A recent report from the Financial Times suggests that Oracle is set to buy $40 billion worth of Nvidia's Blackwell AI chips for deployment in OpenAI's data center in the U.S. This investment is reportedly outside of the $500 billion investment that OpenAI and its partners have pledged in U.S.-based AI infrastructure in the form of the Stargate Project. Nvidia's business is expected to receive a nice boost from Stargate, and that's another reason why the company's guidance for the current quarter could exceed consensus expectations. Analysts are expecting Nvidia's earnings to increase by just 20% year over year in the current quarter. This can be attributed to the margin compression that the company is anticipating during the initial production ramp of its Blackwell processors. However, stronger-than-expected growth in Nvidia's top line could allow it to mitigate the negative margin impact and deliver a bigger jump in earnings. Meanwhile, Nvidia management points out that its margin profile will return to the normal range later this year when Blackwell production is fully ramped up. So, Nvidia's earnings growth is likely to pick up momentum as the year progresses. Consensus estimates point toward something similar, expecting Nvidia's earnings to jump 46% year over year in fiscal Q2. That's why savvy investors should consider buying Nvidia before May 28, as it is trading at 30 times forward earnings right now, which is well below its five-year average forward earnings multiple of 40. Even the tech-laden Nasdaq-100 index has an average earnings multiple of 31. All this suggests that investors are getting a terrific deal on Nvidia stock right now, and they may not want to miss it since the stage seems set for a strong set of quarterly results and guidance from the company that could supercharge its recent rally.

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Prediction: This Insanely Cheap Artificial Intelligence (AI) Stock Will Skyrocket After May 29 (Hint: It's Not Nvidia) | The Motley Fool

Investors and analysts are eagerly looking forward to Nvidia's upcoming results for the first quarter of its fiscal 2026 (ended April 27), which will be released on May 28. That's not surprising as the company is the largest player in the fast-growing market for artificial intelligence (AI) chips. Nvidia's chips power AI data centers of major cloud computing companies and governments around the world, and the company's growth has taken off remarkably in the past couple of years thanks to the robust demand for its graphics processing units (GPUs). There is a good chance that this semiconductor stock could sustain its recent rally after its upcoming report. However, there's another company that's going to release its results just after Nvidia's. Marvell Technology (MRVL 5.78%), another key player in the AI chip market, will be reporting its fiscal 2026 first-quarter results on May 29. The stock has been hammered so far this year, but don't be surprised to see it start soaring after its quarterly report. Let's see why Marvell stock could be set for a breakout after May 29. Marvell Technology has guided for $1.88 billion in revenue for fiscal Q1 along with non-GAAP earnings of $0.61 per share. Those numbers would be a massive improvement over the year-ago period when the company reported adjusted earnings of $0.24 per share on revenue of $1.16 billion. This outstanding growth is going to be driven by the terrific demand for the company's custom AI processors and networking chips. Marvell's custom AI processors are used by the likes of Amazon, Alphabet's Google, and Microsoft to power their AI data centers. Marvell management remarked on the company's March earnings conference call that it is witnessing stronger-than-expected demand from its AI customers. The good part is that these cloud giants are strengthening their relationships with the chipmaker, as they are working with Marvell on deploying its next-generation custom AI silicon as well. As a result, Marvell is anticipating its custom AI chip revenue to increase in fiscal 2026 and beyond. It is worth noting that Marvell's AI revenue in the previous fiscal year was well above its target of $1.5 billion. The company expects to "significantly exceed our $2.5 billion target in fiscal 2026." That won't be surprising, since the company is looking to win more share of the custom AI chip market from bigger rival Broadcom through its product development moves and partnerships. Marvell revealed a 2-nanometer (nm) custom chip architecture in March of this year, which will be an improvement over the 3nm platform on which the company is currently building its chips. The move to a smaller process node should allow Marvell to pack more transistors into a smaller area, making the chips built on the 2nm node more powerful and power-efficient at the same time. Additionally, Marvell recently announced that it is partnering with Nvidia to use the latter's NVLink Fusion platform. This platform will allow third-party chip manufacturers such as Marvell to build custom AI processors that can work in tandem with Nvidia's GPUs. Such a partnership could help Marvell make a bigger dent in the custom AI silicon market, which it expects to grow at a compound annual rate of 45% through 2028. So, Marvell's eye-popping growth is likely to continue beyond the recently concluded quarter. In all, the company seems poised to deliver a solid set of results along with robust guidance when it releases its quarterly report on May 29. That could help turn the stock's fortunes around following a 45% drop so far in 2025. But the good part is that this steep drop has made Marvell stock incredibly cheap to buy right now. Marvell's sharp pullback this year is the reason why it is trading at 22 times earnings. For a company whose earnings are predicted to jump by 77% in the current fiscal year to $2.79 per share, buying Marvell at this valuation looks like a no-brainer. Assuming Marvell indeed hits this mark at the end of the current fiscal year and trades in line with the tech-laden Nasdaq-100 index's earnings multiple of 31 after a year (using the index as a proxy for tech stocks), its stock price could jump to $87. That would be a 45% jump from current levels. Meanwhile, the 12-month price target of $97, as per 38 analysts covering this AI stock, points toward stronger gains, giving investors another reason to buy Marvell Technology, since its upcoming report could trigger a bull run.

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Is Nvidia Stock a Buy Before May 28?

Few companies have benefited more from the artificial intelligence (AI) hype cycle than Nvidia (NVDA -1.02%), as it makes billions by designing the hardware needed to run and train these advanced algorithms. However, in recent times, the company has run into challenges as Chinese competition and international trade disputes weigh on investor optimism. Nvidia's shares are currently down by roughly 10% from an all-time high of $149 reached in January. But is this dip a buying opportunity or a signal for investors to stay far away? The company's first-quarter earnings report expected on May 28 will give us important clues about what the future might bring. It will take a lot to impress investors The hardest part about being a winner is that everyone expects you to keep winning. Expectations are high, and it's easy to see why. In the fiscal fourth quarter, Nvidia's revenue surged by 78% year over year to $39.3 billion, driven by strong demand for its new Blackwell graphics processing units (GPUs) designed to maximize the training speed of AI models. New product releases are a significant growth engine because, despite their high price tags (Blackwell chips are estimated to cost between $30,000 and $40,000 per unit), customers are still willing to shell out because better hardware can help them make money by allowing them to run greater workloads more efficiently and save on energy costs. Nvidia has leveraged its dominant market position to earn huge margins. Fourth-quarter profits surged 73% to $22.1 billion. However, while Nvidia's past performance is excellent, this level of growth might not last forever as the company begins running into increasingly challenging comps. Nevertheless, management remains optimistic for the future, guiding for first-quarter revenue of $43 billion (plus or minus 2%), which would exceed analyst expectations of $41.8 billion and represent a jump of 62% compared to the prior-year period. What are some of the long-term challenges? Despite management's optimism, Nvidia is not without long-term challenges. The company's guidance was released in late February before the Trump administration unleashed its "reciprocal tariff" policy, which has created significant uncertainty in global markets. Perhaps more importantly, guidance may not account for Nvidia's challenges in China. According to CEO Jensen Huang, the Trump administration's ban on sales of its H20 chips to China could eventually cost up to $15 billion in sales. And Nvidia expects a $5.5 billion impairment charge in the first quarter to write down inventory and failed purchase commitments related to the product. With this in mind, Nvidia's first-quarter results may fall on the lower side of guidance or come in lower than expected. Over the long term, Nvidia remains committed to the Chinese market, which Huang believes represents a $50 billion annual opportunity. According to Reuters, the company plans to release a downgraded version of its H20 in China over the next few months. The company has also opened a research and development lab in Shanghai to stay competitive. This is a smart move as Chinese rivals such as Huawei take advantage of Nvidia's regulatory challenges to possibly chip away at its market share with AI chips of their own. Is Nvidia a buy before May 28? With a forward price-to-earnings multiple of 31, Nvidia goes into first-quarter earnings with a slight premium over the S&P 500 average of 24. This valuation is relatively affordable, considering the company's strong growth rate and the continued excitement about the AI industry. That said, Nvidia faces some serious risks to the viability of its China business, and investors may want to wait until first-quarter earnings shed more light on the situation before considering a position in the stock.

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Could Nvidia Stock Help You Retire a Millionaire? | The Motley Fool

Nvidia (NVDA -1.02%) shares soared more than 600% in the last three years. But the stock hasn't recorded any gains in 2025. Investors who are avoiding the stock because they feel the big gains are in the rearview mirror might be making a mistake. Nvidia has taken a breather so far this year amid concerns that sales of its artificial intelligence (AI) advanced chips, software, and supercomputers may have peaked. Yet all the evidence is to the contrary, and the reality is Nvidia should see strong sales growth for quite a while. The stock will likely move higher before those sales are in the books, however. With a seemingly insatiable appetite for its AI products, investors who buy Nvidia stock now may be putting themselves on track to retire millionaires. The most obvious people to ask about demand are the ones buying the product. Nvidia's graphics processing units (GPUs) are still in high demand as its customers seek to expand AI compute capacity. The leaders of several big tech names reaffirmed plans to spend tens of billions of dollars on AI infrastructure this year. They include Meta Platforms and Microsoft. Blackstone is an investor in tech start-ups, so it has a unique perspective on the industry. Chief Operating Officer Jon Gray recently said in a CNBC interview he is seeing a "ton of demand" related to AI data center investments. Tesla CEO Elon Musk also told CNBC recently that the availability of the advanced semiconductor chips needed for AI to expand is currently the biggest limitation. Musk also said power generation and transformer capacity will become limiting factors in the near future. That bodes well for Nvidia's cadence of delivering more efficient chips on an annual basis. Nvidia isn't just relying on keeping its lead in supplying GPU chips, either. That's the critical factor for those investing for retirement -- a long runway of growth is key. In addition to updating its GPU technology offering annually, Nvidia just made an important announcement that can expand its market opportunities. CEO Jensen Huang unveiled a new strategy using Nvidia's NVLink interconnect technology. NVLink is Nvidia's proprietary interconnect technology for chips that enables high-bandwidth connections between Nvidia GPUs, central processing units (CPUs), and custom silicon. It introduced NVLink Fusion, which allows third-party CPUs and accelerators to pair with Nvidia GPUs in circuit boards and server racks. NVLink Fusion will help cement Nvidia's AI ecosystem dominance by allowing a more open model to expand the creation of AI architecture Nvidia currently controls. It helps ensure that the core of the system continues to run through Nvidia's GPU platform. The open-system strategy lets Nvidia maintain control of data center infrastructure while letting competitors innovate around it. Plus, customers that are developing their own in-house strategies to save costs could instead choose to supply chips while still interconnecting with Nvidia infrastructure. First Nvidia beat the competition, now it's inviting them to work with it. That's the right long-term strategy for investors who are also thinking long term. It could accelerate the use of Nvidia platforms by more industries that might prefer a "plug-and-play" type option. If it wasn't already, Nvidia has secured its position as the standard for scaling AI systems. Investors could do well to own shares now as its growing ecosystem will result in growing sales and profits for years to come. It might just be the best stock market option for those looking to retire as millionaires.

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Nvidia's Big Moment Is Just Ahead. Here's What to Watch For.

All eyes are on Nvidia (NVDA 3.07%) today as it prepares to report earnings. Why is the report such a big deal? For a couple of reasons. Nvidia dominates an area that drove stock market gains over the past two years, and investors are looking for clear signals of what's ahead. I'm talking about artificial intelligence (AI), a technology that some say could become the next internet or telephone from an innovation perspective. Nvidia is the world's leading maker of AI chips, the tools that power this entire revolution. So any words from Nvidia may set the tone not only for this AI giant but for other companies that operate within the space. Also, this latest earnings report may be crucial as it's set against a backdrop of recent challenges, from President Trump's import tariff plan to the government's restrictions on chip exports to China. These elements weighed on Nvidia's stock, and it dropped as much as 29% from the start of the year through early April. Since then, the shares have rebounded amid signs that import tariffs won't be as severe as initially planned, leaving Nvidia stock down about 2% for the year as of May 23. Now, let's consider what to watch for during this upcoming big moment for Nvidia and for investors. Nvidia's gross margin First, it's important to note that Nvidia has established a track record of beating analysts' earnings estimates, so investors are eager to see if this continues, particularly as the company still is in the launch phase of its Blackwell architecture. New product rollouts are costly times, so investors want to know whether Nvidia has been able to keep gross margin in the low 70% range, in line with its earlier forecasts. This would show high profitability on sales continues. Nvidia customers, from Meta Platforms to Alphabet, have offered us bright news in their recent earnings reports, saying they're sticking with their capital spending plans for the year. Meta even increased its spending forecast. Now, when Nvidia reports, it's key to listen for any related comments regarding demand to confirm that these spending plans will indeed benefit Nvidia. These customers are likely to continue pouring investment into Nvidia products and services, but competitors exist, and Nvidia customers even may be considered competitors themselves as some have created their own AI chips. Another point to watch for is any commentary on exports to China. Nvidia earlier said it would be taking a $5.5 billion charge in the quarter related to the H20 chip it designed for the Chinese market. The U.S. recently halted sales of that product, saying Nvidia needed an export license. Reports of Nvidia's efforts in China Meanwhile, press reports have suggested Nvidia is considering other ways of maintaining its presence in the China market, one that represented 13% of sales in the latest fiscal year. For example, Nvidia plans on launching new chips for China and may start mass production as early as next month, Reuters reported, citing sources familiar with the project. Finally, Nvidia, which weeks ago announced a new investment in manufacturing in the U.S., may offer more details regarding that effort. Trump's tariffs don't yet apply to electronics, but the president has said he plans to set duties specifically for these types of products. Nvidia generally has relied on production in Taiwan but now aims to bring more and more of this back home. It will be important to see how these moves affect Nvidia's cost structure, and whether any impact will be felt in the near term or farther down the road. Nvidia has said two U.S. facilities should start to ramp up within a year to 15 months. Nvidia has proved itself to be a bellwether for the tech industry, so the company's earnings report could offer not only its stock but the shares of other tech players direction this week. Though this earnings report is a big moment, investors should remember that it still offers a short-term picture of both Nvidia and the general AI market environment. And that means whether Nvidia surprises to the upside or not, you may win by holding this top AI player and other quality tech stocks over the long term.

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Nvidia Stock Pops as AI-Powered Earnings and Revenue Beat Wall Street's Expectations Despite Chinese Market Headwinds | The Motley Fool

In Q1, the tech giant continued to experience powerful demand for its products that enable AI capabilities. Shares of Nvidia (NVDA -0.27%) gained 4.9% in Wednesday's after-hours trading, following the artificial intelligence (AI) tech leader's release of a better-than-expected report for the first quarter of fiscal 2026 (ended April 27, 2025). The main catalysts for the stock's rise are the quarter's revenue and earnings beating Wall Street's expectations, with the profit beat a sizable one. Second-quarter revenue and earnings guidance fell slightly short of the analyst consensus estimates, but not enough to be a concern. Recently, most companies are being particularly conservative with guidance -- or not issuing it at all -- due to extreme uncertainty in the macroeconomic environment stemming from U.S. trade policy. Data source: Nvidia. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q1 2026 ended April 27, 2025. Investors should focus on the adjusted numbers, which exclude one-time items. Wall Street was looking for adjusted EPS of $0.75 on revenue of $43.25 billion, so Nvidia exceeded both expectations. Nvidia's results were much better than they might seem at first glance. Both the top and bottom lines were hurt by new U.S. government export controls on the company's H20 chip, which it had specifically designed for the Chinese market to comply with the government's second round of advanced AI chip export controls. As a result of the new export controls of which Nvidia was informed on April 9 (so 18 days before the end of the quarter), the company incurred a $4.5 billion charge in the first quarter associated with "H20 excess inventory and purchase obligations." The company said sales of H20 chips were $4.6 billion for the first quarter prior to the new restrictions, and that it was unable to ship an additional $2.5 billion of H20s in the quarter. Excluding the H20 charge and related tax impact, Nvidia's adjusted EPS would have surged 57% year over year to $0.96. This result is a more accurate reflection of the company's underlying business performance. Data source: Nvidia. OEM = original equipment manufacturer; OEM and other is not a target-market platform. YOY = year over year. QOQ = quarter over quarter. The data center segment's revenue accounted for nearly 89% of Nvidia's total revenue, up from almost 87% in the year-ago period. This segment's growth is being driven by the powerful demand for Nvidia's products that enable AI capabilities. Gaming also had a great quarter -- indeed, it generated record quarterly revenue. CEO Jensen Huang's statement from the earnings release: Our breakthrough Blackwell NVL72 AI supercomputer -- a 'thinking machine' designed for reasoning -- is now in full-scale production across system makers and cloud service providers. Global demand for NVIDIA's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and NVIDIA stands at the center of this profound transformation. For Q2 of fiscal 2026, which ends in late July, management expects revenue of $45.0 billion, which equates to growth of 50% year over year. This outlook reflects a loss in H20 revenue of about $8.0 billion due to the recently enacted export controls. Management also guided (albeit indirectly by providing a bunch of inputs) for adjusted EPS of $0.98, or 44% growth. Going into the report, Wall Street had been modeling for Q2 adjusted EPS of $0.99 on revenue of $45.66 billion, so the company's outlook fell just slightly short on both counts. But it's extremely likely management is being extra conservative on guidance given the uncertainty surrounding U.S. trade policy and the possibility of further export restrictions. Importantly, the company reiterated that it's "continuing to work toward achieving gross margins in the mid-70% range late this year." In short, Nvidia did a superb job in the quarter despite being blindsided by the H20 export controls at the tail end of the quarter. Moreover, Q2 guidance is very solid, particularly considering the Chinese market headwinds. It makes good sense that investors are pushing the stock price up.

[38]

Will Nvidia Soar After May 28? History Offers a Decidedly Clear Answer. | The Motley Fool

In 2023 and 2024, Nvidia (NVDA -1.02%) pretty much equaled a ticket to an investment win. Over that time period, shares of the artificial intelligence (AI) chip giant skyrocketed, gaining more than 800%. This was thanks to the company's dominance in the high-growth market that supercharged earnings quarter after quarter. A bet on Nvidia was a bet on AI -- and investors were eager to get in on this technology that's often seen as the next big thing. But Nvidia hasn't been such a sure thing for investors this year. Like many other stocks, particularly growth players, it's tumbled amid concern about the potential impact of President Trump's import tariffs on the economy -- and eventually corporate earnings. Nvidia shares have rebounded from lows, but they're still down about 1% for the year. This week, though, Nvidia is heading toward a moment that could offer the stock direction. I'm talking about the company's fiscal 2026 first-quarter earnings report. Will Nvidia stock soar after May 28? History offers us a decidedly clear answer. First, though, a quick note about Nvidia's earnings performance so far and the general AI environment. Companies have been pouring investment into their AI programs, and as part of that, they've flocked to Nvidia for its top graphics processing units (GPUs) and related products and services. Analysts expect the AI market to roar past $2 trillion early in the next decade as more and more companies jump on board the AI train. Nvidia, which already is greatly benefiting from the AI boom, could be one of the biggest winners of this long-term growth story. So far, the company has reported many quarters of double- and triple-digit revenue growth, with revenue and net income reaching records. And profit on sales is high, with gross margin surpassing 70%. All of this has helped drive Nvidia stock higher. As I mentioned, the president's tariff plan halted the momentum as investors worried about potentially higher prices and even a U.S. recession. In that sort of environment, customers could cut back on AI spending, and that would hurt Nvidia. But recent trade deals with the U.K. and China have boosted optimism that import tariff levels won't be as steep as initially announced, averting a major slowdown. That's helped Nvidia and other growth stocks to rebound in recent days. Now, let's consider Nvidia's upcoming earnings report. The chip giant has a record of beating analysts' estimates and announcing positive news such as the successful launch of its Blackwell architecture during the last earnings period. Blackwell brought in $11 billion in revenue during that time, its first quarter of commercialization. There's reason to be optimistic about the report ahead, and we're already prepared for one particular negative point since Nvidia announced it a few weeks ago: a $5.5 billion charge related to U.S. restrictions on the export of its chips to China. So that piece of news shouldn't impact stock performance following the earnings announcement. Considering all of this, will Nvidia soar on its earnings news? A look at history offers us some clues. I took a look at Nvidia's stock performance in the six months following the seven quarterly earnings reports from May 2023 through November 2024. (I didn't include the latest report, from this February, since six months haven't yet passed.) During the first five periods, Nvidia stock soared in the double-digits from the report through the following six months. Gains ranged from 50% to 90%. Only after the past two earnings reports has Nvidia declined in the six-month period -- and it's important to keep two things in mind regarding these declines. First, they've been small, at less than 1% in the six months following the August 2024 earnings report and in the single digits following the November 2024 report. And second, the losses came mainly early this year, as part of the concern about Trump's tariffs and a general question about the future of AI spending. (That spending question was resolved after big Nvidia customers including Meta Platforms and Alphabet reiterated their AI investment plans for the year.) Now let's consider what this tells us about Nvidia's performance post-May 28. If history is right, Nvidia is on track to soar, and in a big way, after its earnings report as this has happened most frequently in the past. That said, the declines we've seen after the past two earnings reports were heavily linked to tariff uncertainty. Though the tariff situation has improved, until the issue is completely resolved, it could represent a potential headwind for Nvidia's stock performance. So all of this shows us that, yes, history says Nvidia could be heading for double-digit gains in the months to follow its earnings report -- but it's important to be aware that an unexpected economic or political issue could get in the way. The good news, though, is history shows us one other thing: Nvidia always has recovered from losses in the past and gone on to advance. And the company's strong competitive position and presence in a high growth market should help it do that again if it encounters tough times. And that means, whether Nvidia soars after May 28 or not, it still is very likely to win over the long term.

[39]

Can Nvidia Stock Hit New Heights? CEO Jensen Huang Just Provided Clear and Compelling Evidence That the Answer Is "Yes." | The Motley Fool

The chipmaker just answered bears who feared the company's growth streak had stalled. To say that investors were on the edge of their seats ahead of Nvidia's (NVDA -0.27%) highly anticipated financial report may well be an understatement. As the poster child for the artificial intelligence (AI) revolution, the company has become the benchmark for the tech industry at large and the yardstick by which progress in AI is being measured. While the chipmaker delivered better-than-anticipated results on both the top and bottom lines, there were a few blemishes in what would have been an otherwise spotless report. Let's take a look at what the results reveal, and if they give us any insight into the future of AI. Investors had high hopes ahead of Nvidia's fiscal 2026 first quarter (ended April 27), and the AI chipmaker delivered. The company generated record revenue of $44.1 billion, up 69% year over year and 12% quarter over quarter. This drove adjusted earnings per share (EPS) of $0.81, which climbed 33%. For context, analysts' consensus estimates were calling for revenue of $43.25 billion and EPS of $0.75, so Nvidia sailed past expectations with some wiggle room. Fueling the bullish results was a record-setting performance from the data center segment, which continues to drive growth. The segment -- which includes processors used for data centers, AI, and cloud computing -- generated revenue that surged 73% year over year to $39.1 billion, driven by continuing demand for AI. One item of note was the Trump administration's tightening export restrictions. Nvidia's H20 processor was originally designed to meet the already rigid requirements for AI chips destined for China. However, demand evaporated thanks to the new, more stringent licensing requirements, causing Nvidia to take a $4.5 billion charge in Q1 -- though that was lower than the $5.5 billion estimate the company provided last month. The impact of the move trickled its way down the financial statements. For example, if not for the write-off, Nvidia's adjusted EPS would have clocked in at $0.96, resulting in a hit of about $0.15 per share. However, as revenue jumped 69%, operating expenses climbed just 44%, sending more to the bottom line and helping blunt the impact of the lost sales to China. Nvidia's cash stockpile has grown over the past year, with cash and marketable securities of $53.7 billion, an increase of 71%. Free cash flow of $26.1 billion soared 75%. CEO Jensen Huang provided commentary about the future of the AI revolution, and the rock star chief executive didn't mince words: Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation. This pronouncement, combined with the company's robust business performance, helped drive Nvidia stock higher in after-hours trading, with shares up more than 4% (as of this writing). Management expects the company's growth spurt to continue. Nvidia is guiding for record second-quarter revenue of $45 billion, which would represent year-over-year growth of 50%. This was largely in line with Wall Street's consensus estimates, but the devil is in the details. The number includes a loss of approximately $8 billion in its fiscal Q2 revenue from the H20 chips, thanks to the more stringent export requirements. Despite the hit to its growth, investors remain bullish on Nvidia stock. Shares are currently selling for roughly 32 times next year's expected earnings. While that's a modest premium, it's still an attractive price to pay for a company expected to grow its profits by 39% this fiscal year and 35% in its fiscal 2026 -- even after the hit to China sales. Nvidia CFO Colette Kress revealed, "Large cloud service providers remained our largest [customers] at just under 50% of data center revenue." A quick calculation reveals that 44% of Nvidia's total revenue is currently dependent on the world's largest cloud infrastructure providers, including Amazon Web Services, Microsoft's Azure Cloud, and Alphabet's Google Cloud. Honorable mention goes to Meta Platforms, which has also significantly scaled up capital expenditures (capex) to build out its data centers. As evidenced by Nvidia's results, the data center build-out continues, and the world's largest tech companies and cloud providers have telegraphed their intention to continue the heavy spending that has characterized the build-out of AI infrastructure. Nvidia continues to dominate the data center GPU market, with more than 90% of the market. For long-term investors, this quarter is one data point in a long track record of impressive execution. Nvidia remains at the heart of the AI revolution, which illustrates that the stock likely has much higher to go from here. It continues to be one of my highest-conviction stocks.

[40]

Jensen Huang Says Nvidia's "Off to the Races." Here's What Could Happen Next. | The Motley Fool

Nvidia (NVDA 3.23%) has delivered such growth in recent years -- with revenue soaring in the double and triple digits and to record levels -- that investors were starting to wonder if the artificial intelligence (AI) giant soon would run out of steam. The concern was that Nvidia's best days might have already passed. After all, such a pace of growth generally doesn't last forever. To make matters worse, over the past couple of months, a backdrop of concerns about import tariffs and AI chip export restrictions to the major market of China prompted some investors to think twice before getting in on Nvidia stock -- even as it was trading at bargain levels. They worried that a potential slowdown was indeed happening. That's why all eyes were on Nvidia's quarterly earnings report this week, with investors hoping to gather clues about current AI demand and prospects ahead. And Nvidia Chief Executive Officer Jensen Huang uttered a key phrase that set the tone for the months and quarters to come. Let's consider what may happen next. Nvidia has charged ahead in this AI boom thanks to its chip, which have become the most sought-after worldwide, and its entire range of AI products and services. All of this has helped supercharge revenue, lifting it to a record $130 billion in the latest fiscal year, and push the stock to gains of more than 800% over the past two years. And in the latest three-month period Nvidia continued to do something it's done quarter after quarter. It topped analysts' revenue and profit estimates, and this time, it did this in spite of a major headwind, a halt to its H20 chip exports to China. During the quarter, the U.S. said the previously authorized H20 now would require an export license. As a result, Nvidia announced a charge of $5.5 billion, which it lowered to $4.5 billion as it was able to reuse certain H20 materials. Overall revenue climbed 69% in the quarter to more than $44 billion, and data center revenue, which includes AI products and services, surged 73% to $39 billion. Diluted earnings per share, excluding the H20 charge and tax impact, came in at $0.96 cents per share. Now, let's move on to the Huang comments. "This is the start of a powerful new wave of growth," he said during Nvidia's earnings call. "We're off to the races. We now have multiple significant growth engines." The idea is that today and into the future Nvidia is gaining from AI on many levels. It continues to power the training of models, but its chips also now drive inference reasoning, or the AI's process of thinking through a complex problem and generating the best answers. And it's also benefiting, and set to see more gains, in the areas of sovereign AI, enterprise AI, and more as countries and companies aim to scale their AI projects. Nvidia said it saw a "sharp jump" in demand for inference in the quarter, and its latest platform, Blackwell, has led to a 30x increase in inference throughput. Even better, Nvidia has a history of continually improving its architecture so Blackwell won't stop here. For example, over two years, Nvidia increased the inference performance of its Hopper architecture by 4x. Considering all of this, what happens next for Nvidia's earnings and stock performance? Nvidia may not deliver triple- or quadruple-digit revenue gains in the future, but that isn't a reason to be disappointed. It's normal for a company's growth to explode higher in those proportions when it's starting from low revenue levels, such as during the very start of the AI boom. Today, the year-ago quarters already represent an extremely high level of revenue -- so Nvidia's double-digit growth represents strong performance. This should continue, with Nvidia expecting a 50% year-over-year jump in revenue in the second quarter, to about $45 billion. And Nvidia's ongoing innovation in the AI chip market should keep it in a dominant position, helping it further prosper as the buildout continues and as AI is actually used across industries. All of this is great news for the stock price, as this earnings momentum suggests that Nvidia, even after soaring in recent years, still has plenty of room to run.

[41]

This Operating Metric Is Going to Make or Break Nvidia Stock on May 28 | The Motley Fool

If you're just waiting for Nvidia's sales and earnings per share figures, you'll be missing out on the big picture. One of the most-anticipated days of the second quarter has arrived. Amid a flurry of economic data and President Donald Trump regularly changing his administration's tariff and trade policies, Wall Street's artificial intelligence (AI) darling Nvidia (NVDA 3.07%) is set to report its fiscal 2026 first-quarter operating results after the closing bell today (May 28). A lot of investors tend to focus on the bread-and-butter headline numbers, which includes Nvidia's revenue and earnings per share (EPS) for the fiscal first quarter, as well as its second-quarter and full-year guidance. These headline figures often provide an extremely quick way for investors to size up how a company performed and/or will perform moving forward. But if you're just awaiting Nvidia's sales and EPS figures, you'll be missing the big picture. One beneath-the-surface operating metric is what has the potential to make or break Nvidia stock on May 28. Heading into 2023, Nvidia was a reasonably important tech company with a $360 billion market cap that was prominently known for its graphics processing units (GPUs) used in high-performance gaming and cryptocurrency mining. As of this writing, it's a $3.3 trillion juggernaut that's arguably the most-important tech stock on the planet. For more than two years, Nvidia's Hopper (H100) GPU and successor Blackwell GPUs have been the backbone of AI-accelerated data centers. Combined, these two chips account for the lion's share of GPUs currently deployed in high-compute data centers. But Nvidia isn't winning solely because of its market share -- it's excelling due to the law of supply and-demand. Businesses eager to build out their AI-data center infrastructure have found AI-focused GPUs are in short supply. Even with world-leading chip fabricator Taiwan Semiconductor Manufacturing expanding its production capacity at a breakneck pace, demand for Nvidia's chips continue to swamp their supply. When demand for a good or service outpaces supply, it's expected that the price of said good or service will rise until demand tapers. Nvidia has had little issue raising its prices and charging two to four times more per chip than its external rivals. That's excellent news for the company's sales and profits. Nvidia's innovation has helped keep it (and its stock) atop the pedestal, as well. CEO Jensen Huang aims to bring a more powerful and energy-efficient chip to market annually through 2027. Following the Hopper and Blackwell are Blackwell Ultra, Vera Rubin, and Vera Rubin Ultra, the latter two of which will be run on a new processor. No external competitors are particularly close to dethroning Nvidia in terms of compute abilities. Based on what recent history has shown, Nvidia has a better-than-average chance of surpassing Wall Street's consensus sales and EPS forecast for the fiscal first quarter. Nvidia has topped analysts' consensus EPS forecast for nine consecutive quarters. But there's another metric that tells a more comprehensive story about Nvidia's operating health: its generally accepted accounting principles (GAAP) gross margin. Gross margin (also called "gross profit margin") is a simple calculation of revenue remaining (expressed as a percentage) after deducting for cost of goods sold. For example, if you brought in $100 in sales and your cost of goods was $20, your gross margin would be 80% (100 - 20 = 80, and (80/100 X 100) = 80%). Nvidia's GAAP gross margin soared after the Hopper became the hottest thing since sliced bread. Being able to charge more than $40,000 per chip in early 2024 sent its GAAP gross margin to a peak of 78.4% during the fiscal 2025 first quarter, which in turn helped Nvidia's net income skyrocket. However, Nvidia's GAAP gross margin has changed course since the comparable quarter one year ago (all quarters based on Nvidia's fiscal year, which ends in late January): To be objective, a GAAP gross margin of 70.6% would still about 500 basis points higher than where Nvidia's gross margin had been vacillating at the high-end over the previous 10 years before the AI boom. Further, the company is generating considerably more in net sales now than it was even one year ago when it had a 78.4% GAAP gross margin. Nevertheless, a trend is being set -- and not an encouraging one. Nvidia's (expected) four-quarter decline in GAAP gross margin looks to be directly related to increasing competition in AI-accelerated data centers. While some of this competition is external, what's more worrisome for Nvidia is that many of its core customers by net sales are developing their own AI-GPUs and AI solutions. Even though these internally developed chips and solutions can't hold water next to the compute potential of Nvidia's hardware, they're considerably cheaper and not backlogged. In other words, it's a recipe for Nvidia to lose out on future data center real estate. The heart of the problem for Nvidia is that this combination of external and internal competition is steadily (pardon the apropos pun) chipping away at its biggest advantage: its pricing power. Wall Street's AI darling has relied on AI-GPU scarcity to charge an exorbitant premium for its Hopper and Blackwell chips. With this scarcity now diminishing, and expected to wane in future quarters, there's the real possibility of Nvidia's pricing power fading. Chances are that we're already witnessing this in the company's GAAP gross margin decline. When Nvidia reports its fiscal first quarter results after the bell on May 28, its GAAP gross margin will tell the tale. If its second quarter GAAP gross margin forecast points higher than what's reported for the first quarter, Nvidia stock can breathe new life. But if the forecast calls for a fifth consecutive quarterly decline in GAAP gross margin, Nvidia stock could have further to fall.

[42]

Prediction: Nvidia Will Underwhelm Wall Street on May 28 | The Motley Fool

Wall Street's favorite artificial intelligence (AI) stock has no room for error. May has been a month of monster news events. It began with Berkshire Hathaway's Warren Buffett announcing plans to step down as CEO by the end of the year. This was followed just days later by the Federal Reserve Open Market Committee meeting on interest rates. All the while, earnings season rolled on and President Trump's administration announced numerous changes to tariff and trade policy. But the pinnacle of news events, in the eyes of investors, might just be Nvidia's (NVDA -1.02%) fiscal 2026 first-quarter operating results, which are scheduled for release following the closing bell on May 28. However, this highly anticipated event may turn out to be a dud for Wall Street's artificial intelligence (AI) champion. For more than two years, AI has been the hottest thing since sliced bread on Wall Street. The ability to empower software and systems to make split-second decisions without human intervention, as well as learn over time, is a game-changer than has relevancy to virtually all industries around the globe. Nvidia finds itself at the center of the evolution of the AI movement. Its Hopper (H100) graphics processing unit (GPU) and successor Blackwell GPU have enjoyed near-monopoly share status in enterprise AI-accelerated data centers. No external competitors have come particularly close to surpassing the compute potential of Nvidia's hardware. Wall Street's AI darling has also benefited from ongoing AI-GPU scarcity. Nvidia isn't lacking for orders -- it's lacking for the physical GPUs to fulfill all the orders it has. When demand for a good or service outpaces its supply, the price for said good or service will rise until demand tapers. According to online technology-focused publication Tom's Hardware, Nvidia's Hopper chip was priced at a 100% to 300% premium to Advanced Micro Devices' (AMD -0.25%) Instinct AI-accelerating chips early last year. The advantage of premium pricing power can be seen in Nvidia's gross margin. Before the AI revolution took shape, Nvidia's generally accepted accounting principles (GAAP) gross margin commonly vacillated between 55% and 65%. In the fiscal first quarter of 2025 (ended April 28, 2024), it peaked at 78.4%. Investors flock to Nvidia because of its innovative prowess, as well. CEO Jensen Huang is aggressively investing in the company's AI future and aiming to bring a new AI-GPU to market on an annual basis. Following the Hopper and Blackwell are the Blackwell Ultra AI platform, Vera Rubin, and Vera Rubin Ultra. The latter three are penned for their debuts in the second-half of 2025, second-half of 2026, and second-half of 2027, respectively. If Nvidia can hold to these innovation timelines, it'll have no trouble maintaining its compute advantage. Lastly, Nvidia delivered where it counts. After reporting $27 billion in full-year sales in fiscal 2023, its revenue skyrocketed to $130.5 billion in fiscal 2025. In the current fiscal year, the consensus of nearly five-dozen analysts is almost $200 billion in sales. Despite all of this working in Nvidia's favor, the table is set for Wall Street's AI icon to underwhelm on May 28. Between the end of 2022 and present day, Nvidia has catapulted from a somewhat important tech stock with a $360 billion market cap to arguably the most-important tech company on the planet with a $3.3 trillion market valuation. Never in history has a megacap company added $3 trillion in market cap so quickly -- and there's absolutely no room for error. Nvidia topping consensus sales and profit expectations for the fiscal first quarter wouldn't be a surprise given the company has surpassed consensus earnings per share for nine consecutive quarters. But there's more to Nvidia's headline numbers than meets the eye. For instance, it's a certainty that competition is picking up from all angles. AMD and China-based Huawei are developing and introducing next-gen AI-GPUs that have the potential to directly compete with Nvidia. But it's not the external competition that Nvidia and its shareholders should be worried about. It's the members of the "Magnificent Seven," many of which are Nvidia's top customers by net sales, which are developing AI-GPUs and solutions to internally use in their data centers. Even if this internally developed hardware is inferior to the Hopper and Blackwell in compute potential, these chips will be considerably cheaper and more accessible (i.e., they're not backlogged). The problem internal development presents is that it reduces AI-GPU scarcity for the businesses that spend the most on AI infrastructure. In simpler terms, it offers fewer future opportunities for Nvidia's GPUs to win valuable AI-data center space. Nvidia's GAAP gross margin is forecast to decline to 70.6% (+/- 50 basis points) for its fiscal 2026 first quarter. NVDA Gross Profit Margin (Quarterly) data by YCharts. We've already begun to see the impact of growing internal competition on Nvidia's GAAP gross margin. As you can see in the chart above, Nvidia's GAAP gross margin peaked at 78.4% in the fiscal first quarter one year ago. It then fell to 75.1% in Q2 2025, 74.6% in Q3 2025, 73% in Q4 2025, and is forecast to come in at 70.6% (+/- 50 basis points) in Q1 2026. What this persistent margin decline tells us is that Nvidia is losing what's been its biggest competitive advantage: its pricing power. As AI-GPU scarcity diminishes over time, Nvidia's gross margin should fall. It's the company's GAAP gross margin, along with the forecast for fiscal Q2's GAAP gross margin, that can cause Nvidia stock to underwhelm on May 28. It's also not clear if Nvidia's accelerated innovation timeline that involves bringing a new GPU to market annually will help or hinder its operations. Though innovation will assist Nvidia in retaining its compute lead, it could quickly depreciate Hopper GPUs and cause future buyers to question when they want to upgrade and how much they want to spend on AI infrastructure. Finally, there's the ongoing overhang of historic precedent. Since (and including) the advent of the internet in the mid-1990s, there hasn't been a truly game-changing innovation or technology that's escaped a bubble-bursting event. This is to say that investors continually overshoot on their estimates of how quickly a game-changing technology will gain utility or enjoy widespread adoption. Though we've witnessed sizable AI investments from some of Wall Street's most-influential businesses, most companies haven't yet optimized their AI solutions and/or aren't generating a profit on their AI investments. This implies we're careening toward yet another next-big-thing innovation bubble-bursting event. While Nvidia has proved me wrong before, the table appears set for an underwhelming performance.

[43]

Seeking Alpha

Nvidia: Don't Worry About Margins (NASDAQ:NVDA)

Despite short term export risks, continued enterprise AI GPU demand reinforce my strong buy rating for NVDA shares. Nvidia Corporation (NASDAQ:NVDA) reported better-than-expected earnings for its first fiscal quarter of FY 2026 amid a continual spending boom on AI GPUs. Nvidia submitted a decent outlook for the second fiscal I am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon. Analyst's Disclosure: I/we have a beneficial long position in the shares of NVDA, AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

[44]

Miami Herald

Analysts issue rare warning on Nvidia stock before key earnings

Nvidia is the leading supplier of graphics processing units, which are essential for artificial intelligence. Its stock surged 171% last year and nearly 239% in 2023, as investors bet on its dominant role in the AI boom. While Nvidia's growth remains strong compared to other tech giants, its pace is slowing. This Memorial Day, get $100 off TheStreet Pro - our best deal of the summer won't last long! Your portfolio will thank you The company expects to report about $43 billion in first-quarter revenue, a 65% increase from a year earlier. That is a sharp slowdown from the 262% growth in the same period last year. In February, Nvidia posted better-than-expected fourth-quarter results, but its stock dropped 8.5% after reporting a narrowed gross margin. The company attributed this to newer data-center products that were more complicated and costly. Nvidia stock continued to struggle in March and early April, dragged down by tariff uncertainties. However, the stock has rallied over the past month. Nvidia faces new reality in China market Just ahead of its next earnings release, Nvidia is benefiting from the U.S. decision to scrap the Biden administration's AI diffusion rules, which would have restricted the sale of its chips to certain countries. Nvidia also became a key topic during President Donald Trump's trip to Saudi Arabia in May. The company said it will supply several hundred thousand AI processors to Humain, an AI startup backed by the Saudi sovereign wealth fund, over five years. Related: Nvidia CEO shares blunt message on China chip sales ban The AI Diffusion Rule, introduced in January 2025, was designed to restrict advanced AI chip exports to countries such as China. But it drew criticism from companies including Microsoft (MSFT) and Oracle (ORCL) , which argued the limits would hurt U.S. businesses in markets like India and Switzerland while doing little to block China. Although the rule has been scrapped, the U.S. is still tightening export controls to curb China's access to advanced AI chips. In April, Nvidia said it would take a $5.5 billion charge to export its H20 chips to China and other countries, citing higher costs under new export rules set by Trump. The company also said it now needs a government license to ship the chips. China remains a key market for Nvidia, making up 13% of its sales in the past financial year. To adapt to the new rules, Nvidia plans to launch another cheaper AI chip for the Chinese market, with production expected to begin as early as September, according to Reuters. Meanwhile, Chinese companies like Huawei are speeding up the development of homegrown AI technologies, reducing dependence on U.S. hardware. Nvidia's market share in China has dropped from 95% before 2022, when export restrictions began, to 50% now, CEO Jensen Huang said in Taipei last week. He also warned that more Chinese customers will turn to Huawei chips if U.S. export curbs continue. Investors will closely watch Nvidia's profitability, outlook, and any comments on chip production and exports in the upcoming earnings report. Bank of America warns of "messy" Q2 guidance Bank of America has updated its views on Nvidia stock ahead of the earnings. It reiterated a buy rating with a price target of $160, according to a research report on May 23. The analysts said Nvidia faces near-term headwinds of the U.S. government's chip sales curb to China. However, the stock remains a "top pick" given its "unique leverage to the global AI deployment cycle, and possibility for China sales recovery on new redesigned/compliant products later in the year." Related: Analysts double price target of new AI stock backed by Nvidia Still, the firm flagged risks of a "messy Q2 guide." "NVDA could guide FQ2 to as low as $41bn, below recently lowered ~$46bn consensus," the analysts wrote, adding that this could imply an earnings per share of 85 cents, or 16% below consensus. More Nvidia: Analysts also estimate Nvidia's full-year earnings per share outlook could land between $3.90 and $4.00, about 10% below the current consensus. Nvidia stock closed at $131.29 on May 23 and is down 2.23% year-to-date. By comparison, the S&P 500 index is down 1.34% over the same period. Related: Veteran fund manager unveils eye-popping S&P 500 forecast

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Analytics Insight

Nvidia Q1 Earnings: Can AI Demand Outweigh Trade Risks?

Analysts also have different opinions on Nvidia's future. Some experts are setting price targets as high as $160, showing confidence in Nvidia's role in AI. Others are more cautious, with price targets closer to $120, pointing to possible trouble ahead due to global trade barriers. Also Read: NVIDIA vs. AMD: Which Graphics Card Dominates in 2025 Nvidia isn't just sitting back and watching things happen -- it is taking active steps to build its future. Along with new chips like Blackwell, Nvidia is also expanding its software offerings. The company has released new tools to help businesses adopt AI technology more easily. For example, the NVIDIA AI Enterprise 5.0 suite is a complete software package that helps companies build and use AI tools safely and effectively. This software works with Nvidia's hardware to create a full system for AI development. Nvidia is also working with big cloud companies like Amazon Web Services, Google Cloud, Microsoft, and Oracle. These partnerships are key to making Nvidia's hardware and software more accessible to customers around the world. By creating a full ecosystem of products and services, Nvidia is building a solid foundation for long-term success in the AI space. Nvidia's Q1 2025 earnings report paints a clear picture: the company is growing fast, thanks to massive demand for AI. Revenue and profits are up sharply, and new products like the Blackwell chip are leading the market. However, rising trade restrictions -- especially the U.S. export ban to China -- create serious risks. These challenges could cut into Nvidia's future earnings and limit its access to one of its biggest markets. Still, the company is moving fast to respond, with new products, partnerships, and international deals aimed at reducing its exposure to trade issues. The big question remains: will the booming demand for AI be enough to keep Nvidia growing even as political and trade risks rise? For now, Nvidia appears to be prepared to face these challenges head-on, with a strong mix of technology, strategy, and global partnerships.

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BNN

Nvidia earnings to reveal hit from U.S. export curbs on China

Nvidia investors will look for definitive answers on how much U.S. chip curbs on China will cost the company when it reports results on Wednesday, even as a pullback in other regulations is expected to open up new markets. In a fresh effort to stymie Beijing's access to cutting-edge technology, the Trump administration last month put export limits on Nvidia's H20 chip - a move the company said would result in US$5.5 billion in charges. CEO Jensen Huang, who pegged the market for AI chips in China at roughly $50 billion next year, said last week Nvidia had walked away from $15 billion of sales in the country after the curbs. Nvidia does not break out sales for the H20, the only AI chip it was allowed to sell to China, a market which accounted for 13 per cent of its revenue last year. "The primary question around results and guidance is can Nvidia lift sales enough to offset the loss of H20 or China business," Wedbush analysts said ahead of the earnings report. While sources have told Reuters that company is planning to launch a new AI chipset for China based on Nvidia's latest generation Blackwell architecture, the uncertainty of losing its China business has dented its stock. The stock has already been under pressure from concerns about mounting AI infrastructure costs. It was down 2 per cent this year, a far cry from their nearly three-fold gain last year. "China will probably be the biggest swing factor for Nvidia's quarter," said D.A. Davidson analyst Gil Luria. The company is expected to report that first-quarter revenue surged 66.2 per cent to $43.28 billion, according to data compiled by LSEG. Susquehanna analysts estimated the restrictions impacted the last three weeks of the April quarter, costing Nvidia about $1 billion in sales. For the rest of the year, lost revenue could amount to as much as $4.5 billion per quarter, they said. Wedbush estimated the quarterly hit at $3 billion to $4 billion. Adjusted gross margin is expected to drop more than 11 percentage points to 67.7 per cent. The write-downs related to H20 shipments could translate to a gross margin hit of up to 12.5 per cent, Wedbush said. Nvidia CEO Huang recently called U.S. semiconductor curbs on China "a failure," saying they have only pushed Chinese rivals such as Huawei to speed up development of homegrown chips. Washington, however, has said it is going to modify a Biden-era export curb called the AI diffusion rule that sought to curb exports of sophisticated AI chips by dividing the world into three tiers, with China blocked entirely. This easing could open up new geographies of growth for Nvidia including the Middle East, though analysts say the region's revenue contribution in the near term will be small. As part of U.S. President Donald Trump's trade deals with some Gulf countries, Nvidia has said it would sell hundreds of thousands of AI chips to Saudi Arabia, including 18,000 of its latest "Blackwell" chips to a startup owned by the country's sovereign wealth fund. After months of worries that investment in AI from large cloud providers was stalling, Nvidia investors have found confidence in pledges from companies including Alphabet's Google to keep spending. Still, the quarters of blowout beats may be over for the company. In its last fiscal year, Nvidia beat Wall Street's quarterly revenue estimates by 4.9 per cent on average. It delivered quarterly sales that was 12.5 per cent above estimates in the fiscal year preceding that. "I don't think investors expectations are very high as we go into it (results)," said Ivana Delevska, chief investment officer of Spear Invest, which holds Nvidia shares in an actively managed exchange-traded fund.

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BofA maintains NVIDIA stock Buy rating and $160 price target By Investing.com

On Tuesday, BofA Securities expressed continued confidence in NVIDIA Corporation (NASDAQ:NVDA), maintaining a Buy rating and a $160.00 price target for the stock. The $3.2 trillion market cap company, which boasts a perfect Piotroski Score of 9 according to InvestingPro, has demonstrated remarkable financial strength with 114.2% revenue growth over the last twelve months. The endorsement follows an updated first-quarter preview by BofA analyst Vivek Arya, who took into account recent supply chain discussions, investor conversations, and NVIDIA's commentary at the recent Computex tradeshow. Arya highlighted a discrepancy between NVIDIA's reported $15 billion in lost sales in China due to the U.S. government's ban on H20 sales to the country, and the more modest $10-$12 billion revised sales expectations for fiscal year 2026/calendar year 2025 by analysts and investors. Additionally, consensus revisions have lowered expectations even further to $3.8 billion. Arya noted that this gap could widen, potentially creating a $4-$5 billion headwind in the second fiscal quarter, depending on the original timing of NVIDIA's shipments to China. The analyst is also looking for signs of confidence from NVIDIA's management regarding a recovery in gross margins (GM) back to the target mid-70s percentage range in the second half of the year, compared to a consensus of 73%/74% in the third and fourth fiscal quarters. Notably, InvestingPro data shows NVIDIA's current gross profit margin stands at 75%, suggesting the company is already operating within its target range. This would be indicative of strong demand and successful execution of rack-level product yields by the company's Blackwell division. Despite the near-term challenges, BofA Securities remains bullish on NVIDIA, citing the company's strategic position in the global AI deployment cycle. With analyst consensus targets ranging from $100 to $220 per share, and an overall "Strong Buy" recommendation according to InvestingPro, which offers 18 additional key insights about NVIDIA's valuation and growth prospects in its comprehensive Pro Research Report, the market appears to share this optimism. Arya also suggested that there could be a potential recovery in China sales later in the year with the introduction of new redesigned and compliant products. In other recent news, NVIDIA is set to release its first-quarter fiscal 2025 earnings, with analysts from Stifel and Susquehanna maintaining a Buy rating and a Positive rating, respectively, both with a $180 price target. Stifel anticipates NVIDIA's results and outlook will align with expectations, despite potential revenue impacts from H20 restrictions. Susquehanna's Christopher Rolland noted that these restrictions affected $1 billion in sales, leading to a revised forecast of $186 billion in total company revenue for FY26. Meanwhile, DA Davidson reaffirmed a Buy rating for Amazon (NASDAQ:AMZN), with a $230 price target, highlighting the deployment of Anthropic's Claude 4 model on Amazon's Trainium chips as a positive development for Amazon Web Services. Additionally, cryptocurrency exchange Kraken announced plans to offer tokenized equities, allowing non-US customers to trade stocks like NVIDIA and Amazon as tokens. This move aims to simplify access to US stocks for international investors by enabling 24/7 trading. Despite some challenges, analysts remain optimistic about NVIDIA's future, with expectations of increased gross margins and strong AI demand. The gaming sector is also projected to see growth, driven by easing supply constraints and rising GPU prices. Overall, these developments reflect significant opportunities and strategic moves for both NVIDIA and Amazon in the evolving tech landscape.

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Nvidia Earnings Preview: Can AI Powerhouse Deliver Another Blockbuster Quarter? | Investing.com UK

Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro's AI-selected stock winners for 45% off! As Nvidia (NASDAQ:NVDA) prepares to report its first-quarter results, Wall Street anticipates another exceptional performance from the AI chip juggernaut that has become the face of the artificial intelligence revolution. The company's upcoming earnings release will be closely scrutinized not only for its financial metrics but also for insights into the broader AI landscape and semiconductor industry dynamics. Past earnings surprises from NVDA have been market-moving events, and this quarter is unlikely to be an exception. Here's what you need to know heading into the print: Nvidia's Q1 numbers are due on Wednesday at 4:20 PM ET. A call with CEO Jensen Huang and CFO Colette Kress is set for 5:00 PM ET. The company's track record is impeccable, having beaten estimates for both the top and bottom line for nine straight quarters. Nvidia's forward guidance will be pivotal, as investors are hypersensitive to signs of slowing growth. Analysts expect Q2 revenue guidance of approximately $45.8 billion and full-year FY2026 revenue of $198.8 billion, up from $130.5 billion in FY2025, with EPS projected at $4.32. Specific areas to watch in the guidance include: A conservative outlook, particularly if impacted by U.S.-China trade restrictions, could trigger volatility. Nvidia's stock is trading at a premium valuation, leaving little room for error. Any miss on earnings or guidance could lead to significant downside, while a beat-and-raise quarter could trigger a rally to new record highs. Market participants expect a sizable swing in NVDA shares following the print, with options markets pricing in a potential $11 move in either direction post-earnings. Source: Investing.com Shares are currently at $135.50, earning the tech giant a market cap of roughly $3.3 trillion. The stock is roughly flat year-to-date. Analyst sentiment remains overwhelmingly bullish, with 53 of 62 analysts rating Nvidia as a "Strong Buy" and a mean price target of $162.77, implying 20.1% upside from current levels. However, the quanititaive models in InvestingPro show that the average 'Fair Value' price for NVDA stands at $125.20 - a potential downside of 7.4% from current levels. Nvidia's earnings report carries significance well beyond its own stock price, given its outsized influence on the tech sector and the benchmark S&P 500 index. Source: Investing.com As the leading provider of AI infrastructure, the company's results and outlook will be viewed as a barometer for the entire AI ecosystem. Cloud service providers, enterprise software companies, and other semiconductor manufacturers could all see market reactions based on Nvidia's commentary about AI adoption trends and infrastructure spending patterns. A strong beat-and-raise could reignite enthusiasm for AI stocks, while any sign of weakness -- particularly in guidance or Blackwell updates -- could spark broader market volatility. With Nvidia shares having already appreciated substantially over the past 24 months, the bar for positive surprise is undoubtedly high. However, the fundamental story around AI acceleration appears to remain intact, with enterprise adoption still in its early stages. For now, Nvidia remains a top pick for investors looking to capitalize on the AI revolution. Those with long-term confidence in Nvidia might use any post-earnings dip as a buying opportunity. Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you're a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop. Subscribe now and instantly unlock access to several market-beating features, including: Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY (NYSE:SPY)), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), and Invesco S&P 500 Equal Weight ETF (RSP). I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies' financials.

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Summit Insights raises NVIDIA stock rating to Buy By Investing.com

On Thursday, Summit Insights Group shifted its stance on NVIDIA Corporation (NASDAQ:NVDA), upgrading the stock from Hold to Buy. The firm's analyst, Kinngai Chan, noted that the concerns regarding double ordering of NVIDIA's Hopper generation AI GPU and the potential impact of China export controls have now been sufficiently factored into the company's stock price. According to InvestingPro data, NVIDIA currently trades slightly above its Fair Value, with a market capitalization of $3.29 trillion and impressive revenue growth of 114% over the last twelve months. The analyst expressed confidence in the ongoing robustness of datacenter capital expenditures, particularly in the training market, which is expected to continue benefiting NVIDIA's AI GPU and datacenter networking businesses. Despite acknowledging the possibility that lesser computing power requirements for inference tasks could affect NVIDIA in the long term, the analyst sees no immediate or medium-term material impact. This confidence is supported by NVIDIA's strong fundamentals, including a perfect Piotroski Score of 9 and an excellent financial health rating from InvestingPro, which offers 18 additional valuable insights about the company's performance. The upgrade comes with a positive outlook for NVIDIA's performance, as industry checks suggest that original design manufacturers (ODMs) have mostly overcome technical challenges associated with NVIDIA's Blackwell generation platform. This resolution is anticipated to pave the way for NVIDIA to achieve meaningful outperformance in the future. NVIDIA, known for its graphics processing units (GPUs), has been a significant player in the AI and datacenter markets. The company's advancements in AI GPUs have positioned it as a key supplier for various industries relying on high-performance computing and artificial intelligence applications. The Summit Insights Group's upgrade reflects a positive sentiment towards NVIDIA's potential to navigate through industry challenges and capitalize on its technological advancements. Investors and market watchers will be closely monitoring NVIDIA's performance in the coming quarters to see if the company can indeed outperform expectations as projected by Summit Insights Group. In other recent news, NVIDIA Corporation has reported financial results that have exceeded expectations, prompting several analyst firms to adjust their outlooks. Mizuho Securities increased their price target to $170, citing NVIDIA's strong April quarter revenue of $44.1 billion, which surpassed the consensus estimate. The company also projected revenues of $45 billion for the July quarter, aligning with market expectations. Cantor Fitzgerald maintained its $200 price target, highlighting NVIDIA's optimistic revenue forecast and the rapid adoption of its Blackwell GPU. Jefferies reiterated its Buy rating with a $185 price target, noting the resolution of inventory issues and the expected production volumes of the GB300 series. TD Cowen raised its price target to $175, emphasizing NVIDIA's strong financial performance and positive feedback on NVLink deployments among major cloud service providers. Meanwhile, DA Davidson increased their price target to $135 but maintained a neutral stance due to uncertainties surrounding NVIDIA's business in China. Despite challenges such as the China H20 embargo, NVIDIA's management remains confident about future growth, particularly in AI technologies. Analysts from Cantor Fitzgerald predict that NVIDIA's Data Center revenue could grow by at least 50% in the second half of the year. These recent developments reflect a strong outlook for NVIDIA, as the company continues to navigate both opportunities and challenges in the tech industry.

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Bernstein maintains NVIDIA stock Outperform with $185 target By Investing.com

On Thursday, Bernstein analysts maintained a positive stance on NVIDIA Corporation (NASDAQ:NVDA), reiterating an Outperform rating with a price target of $185.00. The semiconductor company, known for its graphics processing units (GPUs) and boasting a market capitalization of $3.29 trillion, has been facing challenges due to regulatory headwinds in China, impacting its business operations. According to InvestingPro data, NVIDIA maintains excellent financial health with a perfect Piotroski Score of 9, suggesting strong operational efficiency despite current headwinds. Stacy Rasgon from Bernstein acknowledged the difficulties presented by the recent quarter, praising NVIDIA's management for their transparent approach to the situation. Despite the setbacks, the analyst believes that the negative effects have been fully accounted for in the company's financial projections, suggesting that there could be potential upside if NVIDIA successfully navigates the current restrictions. The company's impressive 114.2% revenue growth and robust gross profit margin of 75% demonstrate its strong market position. The outlook for NVIDIA remains promising, according to Bernstein's analysis. The anticipated success of the Blackwell ramp -- a reference to NVIDIA's next-generation GPU architecture -- and an easing of rack supply constraints in the second half of the year contribute to a positive forecast. Additionally, the demand for computing power is expected to remain strong through the end of the year and into the calendar year 2026, further bolstering the company's position in the market. InvestingPro analysis reveals over 15 additional key insights about NVIDIA's valuation and growth prospects, available exclusively to subscribers. NVIDIA's management has not attempted to downplay the near-term impact of the China situation or its possible long-term consequences. Instead, they have been upfront about the challenges, which has been recognized by analysts as a commendable approach amidst the uncertainty. The semiconductor industry is experiencing dynamic changes, with increasing demands for computing power driving growth and innovation. NVIDIA's focus on meeting these demands, as well as its strategic planning to overcome supply chain issues, positions the company to potentially benefit as market conditions evolve. In other recent news, NVIDIA Corporation reported earnings that exceeded analysts' expectations, with revenue for the April quarter reaching $44.1 billion, surpassing the consensus estimate of $43.3 billion. The company also provided guidance for the July quarter, projecting revenues around $45 billion, which aligns with market expectations. Mizuho Securities raised NVIDIA's stock price target to $170, citing strong revenue and maintaining an Outperform rating. In a related development, Summit Insights Group upgraded NVIDIA's stock rating to Buy, expressing confidence in the company's ongoing datacenter capital expenditures and technological advancements. TD Cowen analysts also showed increased confidence in NVIDIA, raising their price target to $175 and reaffirming their Buy rating, highlighting positive feedback on NVLink deployments. Jefferies maintained its Buy rating with a $185 price target, noting rapid resolution of inventory issues and significant demand in the AI sector. DA Davidson, however, maintained a neutral stance, raising their price target to $135, while expressing concerns about NVIDIA's business in China due to ongoing geopolitical uncertainties. Despite these challenges, NVIDIA's networking revenue is showing growth, with new customers like Google (NASDAQ:GOOGL) and Meta (NASDAQ:META) contributing to NVLink's $1 billion revenue in the April quarter. The company is also seeing strong demand for its Blackwell products, with shipments constituting 70% of total shipments. Analysts and investors are closely monitoring NVIDIA's performance and strategic positioning in the face of both opportunities and uncertainties in the global market.

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Can Nvidia Beat EPS Forecasts While Losing Ground in China? | Investing.com UK

On Wednesday, May 28th, Nvidia (NASDAQ:NVDA) is scheduled to report its Q1 earnings ending April 2025. To beat investor expectations, the dominant AI chip designer would have to beat the analyst forecast of $0.8 earnings per share (EPS), per Zacks Investment Research. In the year-ago quarter, Nvidia reported an EPS of $0.58, which was 625% higher than the EPS reported in Q1 2023. But now that the company has an enormous market weight of $3.2 trillion, the expected yearly EPS uptick is a moderate 38%. Year-to-date, NVDA stock performance is in the negative yield territory, at -5%, having its Relative Strength Index (RSI) fall under 70 last Tuesday. Over a month, however, NVDA shares gained 26.5% value, as it became clear that President Trump's "Liberation Day" regarding the imposition of global tariffs has dubious leverage. Ahead and beyond Wednesday's earnings report, what can investors expect from NVDA stock exposure? When the Chinese startup launched its eponymous DeepSeek R1 model, it surprised the West. Chinese developers managed to harness Nvidia's H800 chips, as nerfed versions of H100 GPUs, to deliver higher efficiency and lower computing costs with clever parallelism and compression techniques. Nvidia's H800s were the company's answer to the federal government's first wave of chip export controls implemented in October 2022. Since then, it has been a bipartisan consensus to stifle China's access to cutting-edge chips with even greater export controls. In other words, the AI race mirrors geopolitics between the US-aligned West and China. In early May at the Milken Institute, US Treasury Secretary Scott Bessent noted that the US has to "win in AI and Quantum". Otherwise, "if we don't win, everything else doesn't matter." For fiscal year 2025, China generated $17.11 billion in revenue for Nvidia. If we take into account the smuggling of AI chips via Singapore, Nvidia's sales in that region would account for 33.26% of the company's total revenue for that period. Expectedly, Nvidia CEO Jensen Huang is not pleased by escalating chip controls to target China. Most recently at Computex Q&A, Huang noted that Nvidia had to exercise "writing off multiple billions of dollars" just on H20 series restriction alone. In total, Huang regrettably informed the audience that the Biden admin lowered Nvidia's market share in China from 95% to 50%. Huang also observed that such restrictions would only accelerate China's chip design and manufacturing ecosystem. Indeed, we have concluded that Huawei, in concert with SMIC, is likely to nullify Western advantage by 2030 or earlier. Although aggressive chip export controls are concerning for Nvidia's bottom line, as a global purveyor of AI tech through TSMC, it is also likely that AI demand will offset it. From the very beginning of the AI hype, we've kept reminding readers that Nvidia's compute power is yet to see a demand uptick once text-to-video outputs become more than a novelty. In just two years, Google's Veo 3 video generator crossed that major milestone recently, as it is now exceedingly difficult to discern the difference between AI content and video recordings. Video generation, combined with audio generation, requires drastically more compute power. Not only is each frame equivalent to text-to-image output, but all frames have to have temporal consistency. Additionally, video generation mimics physics modeling to make interactions and object motion indistinguishable from real footage. To offer greater control in AI apps of the future, alongside robotics, we will likely see a hybrid approach with physics-informed loss functions. This fits perfectly into Nvidia's full-stack offering of GPUs and AI accelerators that simulate physics, such as Newton. Case in point, Flexcompute announced in March that integrating Nvidia's Blackwell platform made it possible to achieve 100x faster physics simulations. On a large scale, Nvidia will also be a key player in supplying tech for smart cities in the form of public-private partnerships (PPPs), as we've recently seen with Saudi Arabia's AI investment spree. Specifically, to enable decision-making in AI-powered governance systems, Nvidia's Omniverse Cloud can run "physical AI solutions with digital twins". Exerting its hegemony, the USG has already made inroads with the Stargate project, announced shortly after President Trump's inauguration. Most recently, on May 22nd, UAE announced the deployment of Stargate UAE cluster utilizing Nvidia's GB300 platform, in joint collaboration with OpenAI and Oracle (NYSE:ORCL). For the USG allowing Nvidia tech in the UAE, the Emirates committed up to $1.4 trillion AI infrastructure investments in the US. In short, Nvidia should not only be viewed as the dominant semiconductor designer company, but as an integral part of US efforts to secure its technological and geopolitical hegemony. We are likely to see many more PPPs that benefit Nvidia's bottom line in the future. After all, as we've maintained all along, AI deployment is primarily about erecting new types of governance systems. Presently priced at $131.29 per share, the average NVDA price target sits at $161.82, according to WSJ's forecasting data. The bottom estimate is $100, while the ceiling is all the way up to $235.92 per share. Only one analyst recommends selling, while the overwhelming majority, 52 analysts, view NVDA stock as a buy opportunity at this price point. *** Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

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Nvidia Rides the AI Supercycle With Another Beat - And Still Looks Underpriced | Investing.com UK

Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro's AI-selected stock winners. NVIDIA Corporation (NASDAQ:NVDA) is usually the last of the big tech companies to report its quarterly results, and it followed that pattern again this time. The numbers released after yesterday's session were positive, as shown by the stock's 5% gain in after-hours trading. Along with the results, Nvidia's management also shared very optimistic comments, similar to last quarter. CEO Jensen Huang highlighted that their latest product, the Blackwell NVL72, puts Nvidia at the center of the global AI boom. He believes this trend will speed up even more, driving stronger demand. Despite some challenges with exports to China, this sets up a strong case for the stock to keep rising. Here are the key financial results for Nvidia's first quarter of fiscal year 2026: Nvidia has now grown both its revenue and earnings per share every quarter for over two years, consistently beating market expectations -- including this quarter. Looking closer at the numbers, data centers remain the company's top revenue driver, bringing in $39.1 billion, a 10% increase from last year. The gaming segment also showed strong momentum. While it generated a much smaller $3.8 billion in revenue, that figure was up 42% year-on-year, a positive sign for future growth. On the strategic front, Nvidia announced plans to build factories in the US with its partners. These will form the core infrastructure for producing supercomputers powered by Nvidia's top products. The company also said similar investments are planned in Saudi Arabia and the United Arab Emirates. Alongside the positive news, there are also some challenges that weigh on Nvidia's overall outlook. The biggest issue is the ongoing restrictions on selling advanced technology to China, one of Nvidia's key markets. Last month, it was confirmed that selling H20 chips to China now requires special licenses. As a result, Nvidia had to write off $2.5 billion in unrealized sales. Looking ahead, losses are expected to increase. In the next quarter, the company may have to write down as much as $8 billion for similar reasons. Despite these headwinds, Nvidia has forecast revenue of around $45 billion for the upcoming quarter, with a margin of error of 2%. In after-hours trading, Nvidia's stock is hovering around $141 per share, a level where there is strong selling pressure. If the stock can break through this zone -- which appears likely -- it could move toward its all-time high near $152 per share. If Nvidia's steep uptrend line is broken, it may not signal a full reversal of the long-term upward trend. However, it could lead to a pullback toward the support level around $122 per share. **** Be sure to check out InvestingPro to stay in sync with the market trend and what it means for your trading. Whether you're a novice investor or a seasoned trader, leveraging InvestingPro can unlock a world of investment opportunities while minimizing risks amid the challenging market backdrop. Subscribe now and instantly unlock access to several market-beating features, including: Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk rests with the investor. We also do not provide any investment advisory services.

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Munster previews NVIDIA's earnings, highlights U.S. chip restrictions By Investing.com

Investing.com -- Deepwater Asset Management's Managing Partner, Gene Munster, recently shared his insights on Nvidia (NASDAQ:NVDA)'s forthcoming earnings release, highlighting the impact of U.S. chip restrictions on China and the potential for the ongoing artificial intelligence (AI) buildout. According to Munster, investors should expect three key takeaways from Nvidia's earnings results for April and guidance for June. Firstly, the U.S. chip restrictions on China are likely to reduce Nvidia's revenue by approximately $15 billion over the next three quarters. This, however, sets up easier year-on-year comparisons for calendar year 2026 (CY26) in China. Secondly, the AI expansion is still in its early stages and could partially offset the effects of the export curbs. Lastly, the revenue growth in CY26 is expected to surpass the current Street expectation of 24%. The U.S. chip curbs are anticipated to lead to downward revisions in Street revenue growth estimates for calendar year 2025 (CY25), from the current expectation of 56% to around 40% year on year. Despite this, underlying GPU demand continues to soar, which investors are likely to view as the most significant update. In April, the U.S. government imposed new export controls, prohibiting the shipment of high-bandwidth memory (HBM) GPUs to China, effectively sidelining Nvidia's H20 chip. This led to a one-time $5.5 billion write-off of inventory in the April quarter. Deepwater estimates that about 25% of Nvidia's FY25 revenue, or $50 billion in CY25, was effectively China-related. This includes $20 billion through authorized channels of H20 sales and another $30 billion going to third parties, many stationed outside of China, that supply China with Nvidia GPUs. To regain this revenue segment, Nvidia is reportedly fast-tracking a "Blackwell-lite" chip that could ship as soon as June, adding back about $5 billion in revenue each quarter it's in the market. For the July guide, buy-side models have already marked revenue estimates down to roughly $38 billion, down $7 billion vs. the imprint estimates of $45 billion, to reflect the U.S. curbs. Munster also pointed out that the demand from non-China customers is exceeding expectations, indicating that the dip is temporary and tied to export paperwork, not end-market weakness. The AI infrastructure spending ramp is intact, with xAI's 'Colossus' data center reportedly targeting roughly one million Blackwell GPUs, which would account for about $30-$40 billion worth of Nvidia hardware over the next two years. If this goes through, xAI alone would account for almost 8% of revenue over the next two years. Furthermore, Apple (NASDAQ:AAPL)'s plans to close the AI gap and step up investment from its current $5 billion AI run rate could add a new 2-4% customer to Nvidia's book. The Street calls for 56% revenue growth in CY25 and just 26% in CY26, but hyperscaler capex plans suggest CY26 growth could accelerate. In the long term, owning Nvidia remains the cleanest way to invest in the AI buildout, according to Munster. Street revenue expectations for CY26 are roughly $245 billion, but Deepwater believes they are 10% too low, implying Nvidia trades closer to 20x forward EPS once the upward revisions flow through. If management reiterates that late in CY25, revenue will re-accelerate as additional Blackwell supply hits the channel, then the multiple on Nvidia has room to expand.

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