Nvidia stock gets a pre-earnings price-target cut
UBS Global Research analyst Timothy Arcuri recently cut his price target on Nvidia stock to $175 from $180, representing implied upside of roughly 32% to current levels. He maintains a Buy rating.
Despite the Trump administration's restrictions on exports of the company's H20 chips to China, which will result in $15 billion in lost revenue according to Nvidia, Arcuri still expects a top-line beat.
He also believes the chipmaker will give stronger-than-expected second-quarter revenue guidance.
"This should be enough to satisfy investors because many (about half) expect revenue to be guided down quarter to quarter," Arcuri says.
He adds that he expects growth to reaccelerate in the second half of the year "as GB300 racks start to ship late in the third quarter and NVDA is potentially allowed to resume shipments of data center GPUs to China with a modified Blackwell-based SKU."
Still, Arcuri is targeting below-Street earnings of 76 cents per share for Q1 on a gross margin of roughly 58.5%.
"Aside from this noise, we do expect a confident overall tone on the call, but the company could slightly temper second-half gross margin commentary because it is sticking with the Bianca compute board configuration for GB300 and pushing the higher margin Cordelia boards to Rubin next year," he notes.
- Karee Venema
What Jensen Huang had to say at Computex 2025
Ahead of next week's big earnings event, Nvidia CEO Jensen Huang delivered the keynote address at Computex 2025, a global computing tech show.
Speaking to a crowd of more than 4,000 people, the executive cheered the Trump administration's recent decision to suspend former President Joe Biden's tiered restrictions on AI chip exports to China.
The AI market in China has extreme growth potential, Huang noted, and could reach $50 billion this year.
Nvidia said in April it expects to incur $5.5 billion in additional costs in its first quarter due to new licensing requirements put in place by the Trump administration.
Other announcements Huang made during Computex included a joint venture between Nvidia, Foxconn Hon Hai Technology Group and the Taiwan government to build an AI factory supercomputer.
Huang also discussed NVLink Fusion, a new architecture that will allow hyperscalers to create semi-custom compute solutions.
"This technology aims to break down traditional data center bottlenecks, enabling a new level of AI scale and more flexible, optimized system designs tailored to specific AI workloads," Nvidia stated in a blog post.
Huang's keynote address at Computex "positioned NVDA as the dominant AI infrastructure player, drawing parallels to electricity and Internet transformations," said CFRA Research analyst Angelo Zino.
- Karee Venema
What time is Nvidia's earnings release?
Nvidia will release its first-quarter earnings report after the stock market closes on Wednesday, May 28. The results typically come through around 4:20 pm to 4:30 pm Eastern Standard Time.
The release of Nvidia's earnings report will be followed by a conference call, which will begin at 5 pm EST.
- Karee Venema
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021, and oversees a wide range of investing coverage, including content focused on equities, fixed income, mutual funds, ETFs, macroeconomics and more.