Nvidia’s Stock Set to Soar as Earnings Report Approaches
Nvidia (NASDAQ: NVDA) has seen its shares surge over 800% between 2023 and 2024, driven by its strong position in the artificial intelligence (AI) market. However, this year, concerns about President Trump’s import tariffs have led to a decline, with shares down about 1% year-to-date despite some recovery.
This week, Nvidia prepares for its fiscal 2026 first-quarter earnings report, scheduled for May 28. Historical data suggests a pattern of stock price increases following earnings announcements, raising investor interest.
Nvidia’s AI Leadership and Revenue Performance
Nvidia’s success is linked to its advanced graphics processing units (GPUs), as companies increase AI investment. Analysts project the AI market will exceed $2 trillion in the next decade, positioning Nvidia as a major beneficiary of long-term growth. The company has posted impressive double- and triple-digit revenue growth, with a gross margin surpassing 70%.
Recent trade agreements have improved outlooks regarding tariffs, easing investor fears about potential price hikes and economic slowdown, contributing to Nvidia’s stock recovery.
Anticipating Earnings Results
Nvidia historically exceeds analysts’ revenue estimates. Its previous earnings report highlighted a successful launch of its Blackwell architecture, generating $11 billion in revenue. Although a $5.5 billion charge related to U.S. export restrictions to China was announced, it is expected to have little impact on post-earnings stock performance.
Analyzing Nvidia’s stock movement six months after recent quarterly earnings, gains ranged from 50% to 90%. Only the last two quarters have shown small declines, attributed mainly to tariff concerns. As major customers reaffirm AI investments, investor sentiment may shift positively.
Addressing Recent Stock Declines
Recent declines in Nvidia’s stock were minimal, largely due to apprehensions over tariffs and AI spending. As the tariff situation stabilizes, the stock may see strong upward movement following the upcoming earnings report. Despite past challenges, Nvidia’s strong market position supports its resilience.
Investment Considerations
Before investing in Nvidia, evaluate potential risks alongside past performance and market trends. While challenges exist, Nvidia’s competitive edge suggests a favorable long-term outlook for investors.
Stock Advisor Reveals Ten Top Stocks, Excluding Nvidia
The Stock Advisor analyst team has listed what they consider the 10 best stocks for investors to purchase currently, with Nvidia notably absent. These selected stocks are projected to yield significant returns in the coming years.
For context, when Netflix was included in this list on December 17, 2004, a $1,000 investment would now be worth $639,271.* Similarly, Nvidia, which was listed on April 15, 2005, would have transformed that same $1,000 into $804,688.*
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*Stock Advisor returns as of May 19, 2025
Suzanne Frey, an executive at Alphabet, serves on The Motley Fool’s board. Randi Zuckerberg, a former Facebook market development director and sister to CEO Mark Zuckerberg, is also a board member. Adria Cimino holds no positions in the mentioned stocks. The Motley Fool has positions in and recommends Alphabet, Meta Platforms, and Nvidia. The Motley Fool follows a disclosure policy.
The views expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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