NVIDIA is Up 20% in a Month. Could the May 20 Earnings Report Knock It Right Back Down?
24/7 Wall St. • • business
Key Points:
- NVIDIA shares rose 4.5% to $236 on Thursday, extending a 20% rally over the past month and a 27% gain year to date, with the company's market cap nearing $5.71 trillion, the largest globally.
- The upcoming Q1 FY2027 earnings report on May 20 is highly anticipated, with analysts holding a $269.17 price target and insider buying activity signaling confidence ahead of the release.
- Despite strong earnings beats in recent quarters, NVIDIA shares have often declined on report days, reflecting a "sell-the-news" risk amid high expectations and a current 97% probability of another beat priced in by traders.
- NVIDIA’s bullish outlook is supported by robust AI-driven demand, record revenue guidance of approximately $78 billion for Q1 FY2027, and new product innovations like the Rubin platform promising significant cost reductions.
- Key factors to watch in the earnings call include Data Center revenue guidance excluding China, hyperscaler order timing, gross margin trends, and supply constraints, all of which could drive significant post-earnings stock volatility.