Chipmaker stock has been essentially flat so far in 2025. Could that quarter results cause a resurgence?
Advances in the field of artificial intelligence (AI) have taken the world into a storm over the past few years, but many of the first hype has subsided. Investors are looking for evidence that AI adoption still has its feet. nvidia‘s (NVDA) 0.83%)) The Graphic Processing Unit (GPU) has become the gold standard for training and execution of generated AI models. The company generated triple-digit revenue and profit growth for the five quarters, but investors were nervous as growth began to slow.
The company is set to announce its results for the first quarter 2026 after the market closed on Wednesday, May 28th, with shareholders and indeed the whole of Wall Street sitting at the edge of its seats for clues as to where AI is going from here.
Let’s look at the company’s latest results and see what the available evidence suggests the company’s future prospects and whether NVIDIA shares are a compelling opportunity ahead of highly anticipated financial reports.
Nvidia’s GB200 Grace Blackwell Superchip. Image source: nvidia.
Envious results
For the fourth quarter of 2025 (ends January 26th), Nvidia reported revenue of $39.3 billion, rising 78% and 12% year-on-year. Strong sales saw earnings per share (EPS) of $0.89, a 82% jump. Without question, it was the ongoing adoption of AI that fueled the results as revenues for the data center segment increased 93%.
Nvidia expects its strong growth to continue. In the first quarter of 2026 (ends April 28th), management led revenues of $43 billion, growing by 65%. Wall Street is just as bullish, with analyst consensus estimates calling for a revenue of $431.5 billion and an adjusted EPS of $0.73. This marks a minor slowdown compared to the robust sales performance of the previous quarter, but it will still be very strong. Nvidia has a long history of publishing conservative guidance, so actual results can be quite high.
Existing customers, new opportunities
The popular narrative suggests a rapid build-out of AI-centric data centers by the major cloud, with tech companies showing a crack, while the evidence suggests that it is not.
Amazon Web services, Microsoft azure, and alphabetGoogle Cloud, the “big 3” of cloud computing, has announced plans to drive infrastructure spending this year. Naturally, the majority of that spending is allocated to additional data centers to support the demand for AI. Don’t lose, Meta Platform They have already announced plans for higher CAPEX spending than was already expected. The total is interesting:
- Amazon: $100 billion
- Microsoft: $80 billion
- Alphabet: $75 billion
- Meta: $68 billion
As the world’s leading provider of processors used for AI, Nvidia is well suited to acquire a critical portion of the spending from the four jockeys in this data center.
There are more. The Trump administration recently revoked the so-called “AI Proliferation Rules.” The strict series of export curbs launched by the Biden administration was designed to prevent US enemies from using AI against our national interests. Critics complained that there were rules Too much They threatened to be strict and reduce innovation. Withdrawal of this rule opened the locks and there were many new NVIDIA AI chip deals.
For example, the company announced a partnership with Saudi Arabian company Humain. Nvidia plans to eventually ship “hundreds of thousands” to build out the country’s data centers, and will soon deliver more than 18,000 GB300 Grace Blackwell processors (the most advanced AI chips). The agreement also includes Infiniband Networking Technology Solutions, which offers ultra-fast processing combined with low latency.
This will help showcase the enormous opportunities remaining in Nvidia.
Will the stock be purchased by May 28th?
Without a doubt, Nvidia remains extremely unstable, but it is difficult to deny the company’s long-term success. Over the past three years, stock prices have risen by 688% (at the time of this writing) but have fallen by 35%. This helps explain one of the most reliable paths to successful investments. You will be buying and holding stocks in the best business you can find at least 3-5 years.
The biggest question regarding investors’ minds is whether Nvidia shares will rise or fall following the highly anticipated financial report, and the truth is that I don’t know. In fact, anyone who openly declares that they know what will happen in the next few days or weeks is not entirely honest.
If I were to predict, I would feel comfortable making some very vague predictions:
- Nvidia announces another quarter of its record revenue
- The company could beat analyst consensus estimates. This is seeking revenue of $431.5 billion.
Beyond that, your guess is as good as mine, and my predictions could be wrong.
That said, nothing has changed about my investment paper for Nvidia. The company’s cutting edge GPUs are the gold standard for AI processing and continue to dominate the market. As a matter of course, there is always a chance that someone will create a better mouse, but the ghost of competition is always a factor.
Most experts believe we are still in the early stages of AI adoption. Most estimates suggest that AI market sizes are at a minimum of $1 trillion, with some estimates suggesting that it could ultimately be 10-15 times.
Nvidia shares are currently selling at about 30 times the advance revenue, and their valuation has recently recovered from its lowest level in two years. However, the company’s history of innovation, industry leadership and long-standing track record of growth give me confidence.
AI is still in the early innings, with Nvidia continuing to lead the bill, buying Nvidia stocks and moving forward with bumpy — yet potentially advantageous.
Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of Motley Fool’s board of directors. Danny Vena has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. Motley Fool has positions for Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia, and is recommended. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.