Nvidia Poised for Record Breaking Earnings on May 28

Nvidia is set to release its Q1 fiscal 2026 results on May 28, with expectations of stellar growth ahead. The results may bolster Nvidia's position in the market, potentially surpassing Microsoft as the world's largest company.

Date: 24-05-2025

AI Rating: 8

Nvidia's Earnings Robustness
Nvidia is building a compelling narrative as it approaches its upcoming earnings announcement. The anticipated first-quarter results for fiscal 2026 are projected to be strong, bolstered by the massive demand for its GPUs, which currently hold over 90% of the market in the data center space. The report suggests significant revenue generation from this division, amounting to $115 billion over the past year. Analysts expect a growth rate just above 66%, slightly exceeding Nvidia's management's projection of 65%. This positive outlook is crucial for investors as it indicates that Nvidia's performance might outshine previous expectations.

Revenue Growth Insights
The underlying projections indicate that Nvidia's revenue is expected to keep growing substantially, especially with the forecasted capital expenditure in data centers forecasted to increase sharply over the next few years. Should Nvidia's revenue continue as projected, this will solidify its stature in the semiconductor and AI market. Additionally, there is optimism regarding Nvidia's guidance for Q2 growth at 54%, which could further elevate investor sentiment if it exceeds expectations.

Challenges and Write-Offs
While the outlook is overwhelmingly positive, it is also important to note Nvidia's recent struggles, including a significant $5.5 billion write-off linked to changing export controls affecting chips bound for China. Despite this challenge, the prevailing sentiment is that investors will favor the future growth projections over past difficulties, which is crucial for maintaining confidence in Nvidia's stock.

Conclusion
Overall, Nvidia's forthcoming earnings report will be pivotal in determining its position in the market. The combination of anticipated revenue growth and the strength of its product offerings places Nvidia in a favorable position, potentially propelling it past Microsoft. Investors should monitor Nvidia closely as the earnings date approaches.

Stocks: NVDA MSFT AAPL