Nvidia (NVDA), the undisputed darling of the artificial intelligence (AI) boom, is set to take center stage on Wall Street once again as it prepares to announce its highly anticipated financial results. The stakes couldn’t be higher, as investors are eager to find out whether the chipmaker’s record-breaking growth trajectory remains intact. That moment of truth arrives on Wednesday, May 28, when Nvidia is set to report its fiscal Q1 earnings after the closing bell.

In this article, we’ll explore Nvidia’s latest developments, outline what investors can expect from its upcoming earnings report, and examine market sentiment through options activity leading up to the report. With that, let’s take a closer look!

About Nvidia Stock

Nvidia (NVDA) is a premier technology firm known for its expertise in graphics processing units and artificial intelligence solutions. The company is renowned for its pioneering contributions to gaming, data centers, and AI-driven applications. NVDA’s technological solutions are developed around a platform strategy that combines hardware, systems, software, algorithms, and services to provide distinctive value. The chipmaker’s market cap currently stands at $3.3 trillion.

Shares of the AI darling have recovered their year-to-date losses and are now down just 1% in 2025. NVDA stock had a rough start to 2025, initially coming under pressure in late January amid concerns over the emergence of DeepSeek, and later falling below the $100 mark after President Donald Trump unveiled his “reciprocal” tariffs in early April. However, the improved tariff and regulatory outlook helped the chipmaker’s stock recover from double-digit losses. Specifically, the U.S. announced a trade agreement with the U.K., reached a deal with China to temporarily suspend most mutual tariffs, signaled that more trade deals may follow, and the Commerce Department stated it does not intend to implement the AI Diffusion rule. The final major positive development came with the Saudi Arabia deal.

Priced at 31.9 times forward earnings, NVDA’s valuation appears reasonable — if not low — for a company with a dominant position in one of the fastest-growing markets.

Recent News for NVDA Stock

On May 13, NVDA stock climbed over 5% after CEO Jensen Huang announced that the chipmaker will supply semiconductors to Saudi Arabian AI firm Humain for a large-scale data center project. In the initial phase, Nvidia is expected to deploy “18,000 NVIDIA GB300 Grace Blackwell AI supercomputers equipped with NVIDIA InfiniBand networking.” This represents a major win for the company. Separately, Bloomberg News reported that the Trump administration is considering a deal to permit the United Arab Emirates to import more than a million advanced Nvidia chips.

On May 9, Wedbush identified 30 tech companies that it believes will “define the future of the AI theme over the coming years.” The list, titled “Defining AI’s Future 30,” features leading tech giants, with Nvidia at the forefront. Analysts led by Daniel Ives emphasized that Nvidia stands as the foundational company behind the AI Revolution, with “the Godfather of AI, Jensen, having the best perch and vantage point” to assess overall enterprise AI demand and the appetite for Nvidia’s AI chips moving forward.

Also on May 9, Reuters reported that Nvidia intends to release a downgraded version of its H20 AI chip for the Chinese market within the next two months, in response to U.S. export restrictions on the original model. The chipmaker has informed major Chinese clients, including top cloud computing providers, that it plans to release the modified H20 chip in July, according to the report. The move marks Nvidia’s latest effort to maintain its presence in one of its biggest markets while adhering to evolving U.S. regulations aimed at limiting China’s access to advanced semiconductor technology.

NVDA Fans, Mark Your Calendars for May 28

On Wednesday, May 28, Nvidia will likely attract attention not just from its fans but from the entire Wall Street community as it reports its Q1 financial results. As usual, the earnings report will be released after the closing bell. With that, let’s take a closer look at what to expect from the company’s upcoming earnings report.

In late February, Nvidia said it expects Q1 revenue to be approximately $43 billion, plus or minus 2%, reflecting a 65% year-over-year increase and a 9% rise from the fourth quarter. Wall Street analysts are projecting virtually the same Q1 revenue figure of $43.03 billion. The chipmaker is expected to post earnings of $0.83 per share, representing a 43.10% year-over-year increase. Notably, Nvidia has topped consensus EPS estimates in each of the last nine quarters and exceeded consensus revenue estimates every quarter since the first quarter of fiscal 2022.

The first-quarter growth is expected to be fueled by continued robust demand for the company’s GPU chips powering generative AI applications. In the prior quarter, Nvidia announced a significant ramp-up in large-scale production of its latest Blackwell AI chips. With that, these new chips, featuring advanced AI capabilities and premium pricing, are anticipated to support Q1 revenue growth. 

Meanwhile, UBS analysts said they anticipate good results from Nvidia’s first quarter. In a note on Monday, strategists led by Timothy Arcuri stated that they expect revenue to come in slightly above current estimates, although they anticipate earnings per share to fall slightly below consensus. Notably, UBS expects NVDA’s growth to accelerate in the second half of the year. “We do see growth reaccelerating substantially in C2H as GB300 racks start to ramp...and Nvidia is potentially allowed to reship a modified Blackwell-based into China,” Arcuri wrote.

It’s important to remember that Nvidia expects to incur a $5.5 billion charge in Q1 after the U.S. imposed a licensing requirement for selling its H20 chips to China. Morningstar analysts said, “China has shrunk to about 10% of Nvidia’s revenue from 20%, and we now expect it to go to close to zero.” Last Tuesday, Huang stated that China’s AI market could grow to around $50 billion within the next two to three years, adding that missing out on it would be a “tremendous loss.”

Investors will also be closely watching Nvidia’s forward guidance for further insight into the outlook for AI growth. It’s worth noting that the AI infrastructure buildout is still in its early stages, suggesting significant growth potential ahead for Nvidia. Also, Nvidia’s largest customers gave strong capital expenditure forecasts during this earnings season. With that, I don’t expect any negative surprises in the company’s guidance.

Options Market Sentiment on Nvidia Stock

Looking at the option chain for May 30, 2025 (right after the earnings report), the $135.00 CALL option shows a bid/ask spread of $7.15/$7.25, while the $135.00 PUT option has a spread of $6.55/$6.65. Keep in mind that this option strike is closest to the current stock price. We can now determine the expected price movement by utilizing the midpoint prices of these options:

6.60 (135.00 put) + 7.20 (135.00 call) = 13.8/135.34 = 10.2%

Based on current prices, the options market indicates that NVDA stock could experience a movement of about 10% by the May 30 options expiration from the $135.00 strike price when applying the long straddle strategy. That would place the stock in a trading range of $121.5 to $149.1.

Notably, call options at the $135.00 strike price outnumber put options by a ratio of 6 to 1, with 31,383 open calls versus 5,249 open puts. This reflects strong bullish sentiment, indicating that options traders are actively wagering on the stock’s future upside.

What Do Analysts Expect for NVDA Stock?

Overall, Wall Street analysts remain bullish on Nvidia ahead of its Q1 results, reflected in the stock’s consensus “Strong Buy” rating. Of the 44 analysts providing recommendations for the stock, 37 rate it as a “Strong Buy,” two suggest a “Moderate Buy,” four recommend holding, and one gives it a rare “Strong Sell” rating. The average price target for NVDA stock is $166.10, suggesting a potential upside of 22.3% from current levels.