NVIDIA Set to Report Strong Q1 Earnings Amid Market Optimism

With a market capitalization of $2.7 trillion, NVIDIA Corporation (NVDA) has transitioned from providing PC graphics to focusing on artificial intelligence (AI) and high-performance computing (HPC) solutions. Based in Santa Clara, California, NVIDIA is also a key player in gaming and virtual reality (VR) sectors. The company is set to announce its fiscal Q1 earnings for 2026 on Wednesday, May 28, following market close.

Analyst Expectations and Performance Trends

Analysts predict that NVIDIA will report a profit of $0.82 per share, reflecting a 41.4% increase from $0.58 per share in the same quarter last year. This aligns with NVIDIA’s strong history of consistently surpassing Wall Street’s earnings estimates, having achieved earnings of $0.85 per share in the previous quarter, which exceeded consensus estimates by 7.6%.

For the entire fiscal year, projections indicate NVDA will report earnings per share (EPS) of $4.01, up 36.9% from $2.93 in fiscal 2025. Looking ahead, analysts foresee a further increase to $5 per share in fiscal 2027, marking a growth of 24.7% year over year.

Recent Stock Performance and Revenue Growth

NVIDIA’s stock has risen 23.9% in the past 52 weeks, significantly outperforming the S&P 500 Index, which increased by 8.4%, and the Technology Select Sector SPDR Fund (XLK), which rose nearly 4.2% in the same period.

On February 26, NVIDIA reported Q4 earnings that showed impressive growth. The company’s revenue soared by 77.9% year-over-year to a record $39.3 billion. Its adjusted EPS rose by 71.2% compared to the same quarter last year, reaching $0.89. A significant factor behind these numbers was the surge in data center revenue, which hit a record $35.6 billion due to increasing demand for AI and cloud computing solutions. Additionally, the successful launch of NVIDIA’s next-generation AI chip, Blackwell, contributed to this robust performance.

Investor Sentiment and Analyst Ratings

Despite these strong results, NVIDIA’s shares fell by 8.5% in the following trading session. Investor concerns regarding emerging low-cost AI models, such as China’s DeepSeek, along with geopolitical tensions and potential tariffs affecting supply chains, seem to have dampened market sentiment.

Despite this, Wall Street remains highly optimistic about NVIDIA’s stock, with a “Strong Buy” rating overall. Out of 43 analysts covering the stock, 37 recommend “Strong Buy,” two suggest “Moderate Buy,” and four indicate “Hold.” The mean price target for NVIDIA stands at $167.80, reflecting a potential upside of 54.3% from current levels.

On the date of publication, Neharika Jain did not hold any positions, directly or indirectly, in any of the securities mentioned in this article. All information is for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.