NVDA Stock Poised for Positive Market Reaction Amid Beat-and-Raise Expectations
Nvidia's (NVDA) first-quarter earnings are expected on Wednesday, May 20, and Wall Street is abuzz with predictions of a 'beat-and-raise' pattern. KeyBanc notes that several upside catalysts will drive strong results, including a quarter-over-quarter increase in Blackwell GPU shipments and initial Rubin revenue of up to $4 billion.
Morgan Stanley agrees, stating that a typical beat-and-raise pattern is likely for Nvidia. The firm believes the quarter will be 'a positive step towards a stock rerating.' Morgan Stanley also kept its 'Overweight' rating and set a new price target of $285, implying an upside potential of more than 26% from Friday's closing.
DA Davidson hiked its price target on Nvidia to $300 while maintaining a ‘Buy’ rating. The firm said Nvidia’s position as the critical provider of compute equipment is unlikely to change soon. Koyfin estimates Nvidia to post earnings of $1.78 per share on revenue of $79.23 billion for the first quarter.
Retail sentiment about NVDA remains extremely bullish, with one user noting that the stock price is 'poised for a very positive market reaction' following its earnings report. With nearly 21% gain so far this year and over 67% in the past 12 months, Nvidia's stock has outperformed the S&P 500.