Valued at a market cap of $2.7 trillion, NVIDIA Corporation (NVDA) is a computing infrastructure company that provides graphics, computing, and networking solutions. Over the years, the Santa Clara, California-based company’s focus has evolved from PC graphics to artificial intelligence (AI) based solutions that now support high-performance computing (HPC), gaming, and virtual reality (VR) platforms. It is expected to announce its fiscal Q1 earnings for 2026 after the market closes on Wednesday, May 28.

Prior to this event, analysts project this semiconductor company to report a profit of $0.82 per share, up 41.4% from $0.58 per share in the year-ago quarter. The company has a solid trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $0.85 per share in the previous quarter exceeded the consensus estimates by 7.6%. 

For the full year, analysts expect NVDA to report EPS of $4.01, up 36.9% from $2.93 in fiscal 2025. Furthermore, its EPS is expected to grow 24.7% year over year to $5 in fiscal 2027. 

NVDA has rallied 23.9% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 8.4% gain, and the Technology Select Sector SPDR Fund’s (XLK) nearly 4.2% rise over the same time frame.

On Feb. 26, NVDA delivered its Q4 earnings results. The company’s revenue surged 77.9% year-over-year to a record $39.3 billion. Additionally, its adjusted EPS also showed significant growth, rising 71.2% from the same quarter last year to $0.89. A massive rise in the company’s data center revenue to a record $35.6 billion, fueled by escalating demand for AI and cloud computing solutions was a significant contributor to the strong results. Moreover, the successful launch and rapid adoption of its next-generation AI chip, Blackwell, further contributed to the company’s stellar performance. 

However, despite these impressive figures, NVIDIA’s shares dropped 8.5% in the following trading session. This decline may have been driven by investor concerns over emerging low-cost AI models, like China’s DeepSeek, as well as ongoing geopolitical tensions and potential tariffs, which could disrupt NVIDIA’s component supply chains. These uncertainties appear to have weighed on investor sentiment, overshadowing the otherwise strong quarterly performance.

Wall Street analysts are highly optimistic about NVDA’s stock, with a “Strong Buy" rating overall. Among 43 analysts covering the stock, 37 recommend "Strong Buy," two suggest “Moderate Buy,” and four indicate “Hold.” The mean price target for NVDA is $167.80, which indicates a notable 54.3% potential upside from the current levels.