Nvidia (NVDA) has proved a clear first-quarter earnings season winner, although it is yet to report its own results, due to revived optimism from analysts and steadfast capital spending by top-tier tech companies. Melius Research counted Nvidia a “winner” due to recent performance across hyperscalers such as Microsoft (MSFT) and Alphabet (GOOGL). Both companies shared ongoing commitments to steep AI-driven capital expenditures. 

That’s particularly significant as Nvidia grapples with headwinds such as tariffs and new chip export restrictions. However, Wall Street’s attention has swung instead to the potential for upside from solidly sustained demand for Nvidia’s Blackwell chips and good visibility for hyperscaler orders through the end of the year.

In the meantime, Nvidia has risen nearly 30% in the last 12 months and reinforced its leadership in the AI hardware boom.

About Nvidia Stock

Nvidia (NVDA) is a worldwide leader in the graphics processing unit (GPU), AI computing, and data center markets. Based in Santa Clara, California, the company’s $2.86 trillion market capitalization ranks it among the biggest firms in the world. It dominates both enterprise and consumer-grade AI infrastructure.

NVDA’s performance comes on the back of a huge expansion in its data center segment and booming AI chip sales.

From a valuation perspective, Nvidia carries a forward price-earnings multiple of 27.9x and a price-sales multiple of 21.3x. These metrics are high in relation to semiconductor industry norms but justified given the huge moat Nvidia enjoys, tremendous profitability, and enormous AI growth. With a return on equity of 112.33% and a net profit margin of 55.85%, the company is performing at a top-notch level.

Nvidia Could Top Earnings With Blackwell Surge and Chinese Tailwind 

Although Nvidia’s earnings report for the first quarter of its fiscal 2026 is still a few weeks off on May 28, experts think the company might report estimate-beating results due to healthy Chinese demand for its H20 chips prior to new export restrictions becoming fully effective. 

Beyond that, Wall Street is generally expecting another good quarter. Estimates call for Nvidia to report $0.83 in earnings per share, up more than 43% year-over-year. Analysts predict $43.09 billion in revenue, up 65% year-over-year, indicating that the demand for its AI hardware persists even in the face of geopolitical uncertainty.

Nvidia last quarter reported $0.89 in EPS ($0.04 above expectations) and revenue of $39.33 billion ($1.19 billion above expectations), solidifying its leadership in the data center and AI spaces. With deliveries of the Blackwell chip picking up steam, analysts are monitoring when and how aggressively the new platform is being taken up by the hyperscalers.

The company may face challenges in its current fiscal Q2 because of the ban on H20 exports, warning of a $5.5 billion hit to its results. The company does anticipate deliveries of Blackwell chips to U.S. hyperscalers and Tier 2 cloud providers boosting results in Q3 and Q4.

In spite of geopolitical uncertainty, the foundation for Nvidia’s long-term expansion remains in place. Capital expenditures roadmaps by the likes of Microsoft, Google, Meta (META), and Amazon (AMZN) indicate demand for Nvidia’s high-performance computing will last through 2026.

What Do Analysts Expect for Nvidia Stock?

Nvidia has a solid “Strong Buy” recommendation consensus of 44 analysts reported by Barchart. A total of 37 analysts rate it a “Strong Buy,” and only a single “ Strong Sell” rating indicates sustained optimism.

It has a mean price target of $166, which implies about 43% potential upside from its current price levels.