Nvidia: Is it wise to hold through earnings?

Key Outline:

Nvidia (NASDAQ: NVDA) is set to announce its fiscal Q1 2026 earnings on May 28, 2025, after market close. Investors are keenly watching the report, especially after the company’s recent stock performance and strategic moves in the AI sector.

Earnings Expectations

Analysts project Nvidia to report earnings per share (EPS) of approximately $0.89, with revenue estimates around $43.2 billion, marking a significant year-over-year growth of about 65% . This growth is largely attributed to the continued demand for AI and data center products.

Recent Developments

Nvidia’s stock has experienced volatility, recently rebounding from its April lows. The company announced a partnership with Saudi Arabian AI firm Humain to supply semiconductors for a new data center, which has positively influenced investor sentiment . Additionally, Nvidia unveiled its GeForce RTX 50 series GPUs, based on the Blackwell architecture, aiming to strengthen its position in the gaming and AI markets .

Analyst Sentiment

The consensus among analysts remains bullish, with a majority rating the stock as a “Buy” and an average 12-month price target of $164.51, suggesting a potential upside from current levels . However, some caution that the stock’s high valuation requires Nvidia to meet or exceed expectations to maintain its momentum.

Conclusion

As Nvidia approaches its earnings release, the market will be closely monitoring its performance and guidance. Strong results could reinforce investor confidence, while any shortfall might lead to increased volatility. Given the company’s pivotal role in AI and data center technologies, its earnings will also provide insights into broader industry trends.

Personally, I believe the stock has done well to recover from its lows in 90 dollar range. However with the trade war still ongoing as well as the standoff between US and China, it is a risk reward scenario again. Nvidia will continue to dominate AI and be pivotal in the AI scene. As such, it will continue to be one of the stocks in my portfolio. But with heightened market risks, I think it is prudent to trim positions and wait for better prices.

Disclaimer: Please kindly do your own due diligence as this is a sharing article and in no means financial advise.

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