NVIDIA Earnings Preview: Analysts Predict 'Beat-and-Raise' Quarter
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Newsfilter
- Optimistic Earnings Outlook: Analysts predict that NVIDIA will report a 'beat-and-raise' quarter on May 20, reflecting strong market confidence in its growth potential, which could drive the stock price higher.
- Price Target Updates: Wall Street analysts have revised their price targets for NVIDIA, indicating a bullish outlook on the company's future performance, further enhancing investor interest in its shares.
- Positive Market Reaction: As the earnings report approaches, NVIDIA's stock price may be buoyed by positive sentiment, with investors eager to see its leadership in the AI and data center sectors.
- Strategic Growth Drivers: NVIDIA's ongoing innovations in graphics processing units and artificial intelligence are expected to generate substantial revenue growth, solidifying its competitive advantage in the technology industry.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
Current: 214.250
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia CEO Describes AI Demand as Parabolic Growth
- Strong Earnings Report: Nvidia's fiscal Q1 2027 revenue reached $81.6 billion, an 85% year-over-year increase, reflecting robust market demand and business acceleration, particularly in its AI-driven data center segment, which saw a 92% revenue growth, laying a solid foundation for future growth.
- Significant Profit Increase: Non-GAAP earnings per share surged 140% year-over-year to $1.87, driven by revenue growth and margin expansion, indicating a substantial enhancement in the company's profitability within the AI sector, further solidifying its market leadership.
- Aggressive Capital Return: Nvidia raised its quarterly dividend from $0.01 to $0.25, a 25-fold increase, and authorized an $80 billion share repurchase plan, demonstrating strong confidence in future cash flows while returning approximately $20 billion to shareholders in the last quarter alone.
- Forward-Looking Commitments: Management anticipates about $1 trillion in revenue visibility from 2025 to 2027, with total supply commitments swelling to $145 billion, indicating a long-term bullish outlook on the AI market, despite competitive risks from customers developing their own custom chips.
See More
Greg Abel's Three Major Successful Investments as CEO
- Successful Oxychem Acquisition: Berkshire Hathaway's $9.7 billion acquisition of Oxychem was finalized during a downturn in the chemical industry, with an estimated 8x EBITDA for 2025, benefiting from modernization efforts and pricing power, leading to excellent first-quarter performance.
- Strategic Tokio Marine Investment: Abel's $1.8 billion purchase of a 2.5% stake in Tokio Marine, with permission to increase to 9.9%, was made at a premium of nearly twice book value, yet is expected to yield additional upside through a risk-sharing agreement, enhancing the insurance business.
- Precise Timing in Alphabet Investment: Abel tripled Berkshire's stake in Alphabet to $22.5 billion, investing approximately $11 billion in the first quarter, capitalizing on market recovery and strong AI-driven earnings, with the stock price rising about 35% since last quarter.
- AI-Driven Revenue Growth: Alphabet's cloud revenue surged 63%, with operating margins expanding from 17.8% to 32.9%, as AI integration improved search and advertising performance, resulting in a 19% increase in search revenue, indicating strong future growth potential.
See More
S&P 500 Future Outlook and Performance Insights
- Historical Performance Review: Over the past 20 years, the S&P 500 has achieved an annual return of 9.3% excluding dividends, while the total return including dividends reached 768%, demonstrating its strong position as a benchmark for the U.S. stock market.
- Future Growth Expectations: Wall Street analysts project a 25% increase in earnings for S&P 500 companies in 2026, up from 14% in 2025, primarily driven by robust spending on artificial intelligence infrastructure and corporate tax breaks.
- Market Risk Factors: While strong earnings growth is expected to drive the S&P 500 higher, economic uncertainties stemming from the Iran conflict and potential interest rate hikes could negatively impact the stock market, necessitating cautious investor strategies.
- Investment Recommendations: When considering investments in the S&P 500 index, investors should also explore other potential stocks, as the Motley Fool analyst team has identified 10 stocks that could yield significant returns in the coming years, highlighting diverse investment opportunities in the market.
See More
AI Drives Stock Market to Record Highs
- Record Highs in Markets: The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all reached historic highs recently, driven by the rise of artificial intelligence (AI), indicating strong market momentum despite increased volatility, which keeps investors optimistic about the future.
- Unprecedented Valuation Levels: As of May 22, the S&P 500's Shiller P/E Ratio hit 42.04, significantly above the 155-year average of 17.4, nearing levels seen during the dot-com bubble, with historical data suggesting that such high valuations often precede major market corrections.
- Rise of AI Sector: AI-related stocks now account for approximately 40% of the market, with companies like Nvidia experiencing explosive revenue growth in their data centers, reflecting strong demand and exceptional pricing power in the sector.
- Historical Lessons Caution: While the potential of AI technology is immense, history shows that investors tend to overestimate the optimization capabilities of new technologies, similar to the pre-bubble internet era, raising concerns about a potential AI bubble burst that could lead to significant market downturns.
See More
Nvidia Reports 75% Gross Margin in Latest Quarter
- Record Gross Margin: Nvidia achieved an adjusted gross margin of 75% last quarter, up from 71.3% year-over-year, reflecting its strong pricing power in the AI processor market, which has driven net income and earnings growth.
- Strong Sales Performance: The company reported adjusted earnings of $1.87 per share on sales of $81.62 billion, significantly exceeding Wall Street's expectations, yet despite an 85% year-over-year sales growth, the market's muted reaction prevented further stock price increases.
- Increased Competition: As competition in the AI processor space intensifies, Nvidia may face gross margin compression risks, particularly with the rising preference for application-specific integrated circuits (ASICs), necessitating close monitoring of the software and services contribution to overall sales in the next three years.
- Optimistic Growth Outlook: Despite challenges, management maintains a positive growth outlook, especially with potential expansion into central processing units (CPUs) that could open substantial new sales channels, thereby driving earnings growth.
See More
SpaceX Plans IPO, Signaling Market Shift in Private Funding
- Delayed IPO Timeline: SpaceX is targeting a public listing approximately 24 years after its founding, making it one of the latest entrants among recent IPOs, which underscores a growing reliance on private funding and may alter how future investors engage with new companies.
- Comparison with Peers: Unlike early public companies like Amazon, Apple, and Netflix that went public within 3 to 6 years of their founding, SpaceX's extended timeline could reshape investor expectations regarding the timing of new market entrants.
- Shifting Market Trends: The trend of companies like Palantir and Reddit, which waited 17 to 19 years before going public, highlights that IPOs are increasingly viewed as a means for early investors to cash out rather than a starting point for new ventures, as exemplified by SpaceX's anticipated listing.
- Investor Strategy Reevaluation: As IPOs evolve into cash-out opportunities for early investors and employees, investors may need to reassess their strategies to adapt to this market shift, particularly when seeking investment opportunities in emerging tech companies.
See More
Nvidia CEO Describes AI Demand as Parabolic Growth
- Strong Earnings Report: Nvidia's fiscal Q1 2027 revenue reached $81.6 billion, an 85% year-over-year increase, reflecting robust market demand and business acceleration, particularly in its AI-driven data center segment, which saw a 92% revenue growth, laying a solid foundation for future growth.
- Significant Profit Increase: Non-GAAP earnings per share surged 140% year-over-year to $1.87, driven by revenue growth and margin expansion, indicating a substantial enhancement in the company's profitability within the AI sector, further solidifying its market leadership.
- Aggressive Capital Return: Nvidia raised its quarterly dividend from $0.01 to $0.25, a 25-fold increase, and authorized an $80 billion share repurchase plan, demonstrating strong confidence in future cash flows while returning approximately $20 billion to shareholders in the last quarter alone.
- Forward-Looking Commitments: Management anticipates about $1 trillion in revenue visibility from 2025 to 2027, with total supply commitments swelling to $145 billion, indicating a long-term bullish outlook on the AI market, despite competitive risks from customers developing their own custom chips.
See More
Greg Abel's Three Major Successful Investments as CEO
- Successful Oxychem Acquisition: Berkshire Hathaway's $9.7 billion acquisition of Oxychem was finalized during a downturn in the chemical industry, with an estimated 8x EBITDA for 2025, benefiting from modernization efforts and pricing power, leading to excellent first-quarter performance.
- Strategic Tokio Marine Investment: Abel's $1.8 billion purchase of a 2.5% stake in Tokio Marine, with permission to increase to 9.9%, was made at a premium of nearly twice book value, yet is expected to yield additional upside through a risk-sharing agreement, enhancing the insurance business.
- Precise Timing in Alphabet Investment: Abel tripled Berkshire's stake in Alphabet to $22.5 billion, investing approximately $11 billion in the first quarter, capitalizing on market recovery and strong AI-driven earnings, with the stock price rising about 35% since last quarter.
- AI-Driven Revenue Growth: Alphabet's cloud revenue surged 63%, with operating margins expanding from 17.8% to 32.9%, as AI integration improved search and advertising performance, resulting in a 19% increase in search revenue, indicating strong future growth potential.
See More
S&P 500 Future Outlook and Performance Insights
- Historical Performance Review: Over the past 20 years, the S&P 500 has achieved an annual return of 9.3% excluding dividends, while the total return including dividends reached 768%, demonstrating its strong position as a benchmark for the U.S. stock market.
- Future Growth Expectations: Wall Street analysts project a 25% increase in earnings for S&P 500 companies in 2026, up from 14% in 2025, primarily driven by robust spending on artificial intelligence infrastructure and corporate tax breaks.
- Market Risk Factors: While strong earnings growth is expected to drive the S&P 500 higher, economic uncertainties stemming from the Iran conflict and potential interest rate hikes could negatively impact the stock market, necessitating cautious investor strategies.
- Investment Recommendations: When considering investments in the S&P 500 index, investors should also explore other potential stocks, as the Motley Fool analyst team has identified 10 stocks that could yield significant returns in the coming years, highlighting diverse investment opportunities in the market.
See More
AI Drives Stock Market to Record Highs
- Record Highs in Markets: The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have all reached historic highs recently, driven by the rise of artificial intelligence (AI), indicating strong market momentum despite increased volatility, which keeps investors optimistic about the future.
- Unprecedented Valuation Levels: As of May 22, the S&P 500's Shiller P/E Ratio hit 42.04, significantly above the 155-year average of 17.4, nearing levels seen during the dot-com bubble, with historical data suggesting that such high valuations often precede major market corrections.
- Rise of AI Sector: AI-related stocks now account for approximately 40% of the market, with companies like Nvidia experiencing explosive revenue growth in their data centers, reflecting strong demand and exceptional pricing power in the sector.
- Historical Lessons Caution: While the potential of AI technology is immense, history shows that investors tend to overestimate the optimization capabilities of new technologies, similar to the pre-bubble internet era, raising concerns about a potential AI bubble burst that could lead to significant market downturns.
See More
Nvidia Reports 75% Gross Margin in Latest Quarter
- Record Gross Margin: Nvidia achieved an adjusted gross margin of 75% last quarter, up from 71.3% year-over-year, reflecting its strong pricing power in the AI processor market, which has driven net income and earnings growth.
- Strong Sales Performance: The company reported adjusted earnings of $1.87 per share on sales of $81.62 billion, significantly exceeding Wall Street's expectations, yet despite an 85% year-over-year sales growth, the market's muted reaction prevented further stock price increases.
- Increased Competition: As competition in the AI processor space intensifies, Nvidia may face gross margin compression risks, particularly with the rising preference for application-specific integrated circuits (ASICs), necessitating close monitoring of the software and services contribution to overall sales in the next three years.
- Optimistic Growth Outlook: Despite challenges, management maintains a positive growth outlook, especially with potential expansion into central processing units (CPUs) that could open substantial new sales channels, thereby driving earnings growth.
See More
SpaceX Plans IPO, Signaling Market Shift in Private Funding
- Delayed IPO Timeline: SpaceX is targeting a public listing approximately 24 years after its founding, making it one of the latest entrants among recent IPOs, which underscores a growing reliance on private funding and may alter how future investors engage with new companies.
- Comparison with Peers: Unlike early public companies like Amazon, Apple, and Netflix that went public within 3 to 6 years of their founding, SpaceX's extended timeline could reshape investor expectations regarding the timing of new market entrants.
- Shifting Market Trends: The trend of companies like Palantir and Reddit, which waited 17 to 19 years before going public, highlights that IPOs are increasingly viewed as a means for early investors to cash out rather than a starting point for new ventures, as exemplified by SpaceX's anticipated listing.
- Investor Strategy Reevaluation: As IPOs evolve into cash-out opportunities for early investors and employees, investors may need to reassess their strategies to adapt to this market shift, particularly when seeking investment opportunities in emerging tech companies.
See More
