Nvidia (NVDA) Stock: Wall Street Anticipates Key Earnings Report on Wednesday

TLDR

• Nvidia reports earnings Wednesday after the close, with Wall Street watching closely for signals on AI demand.
• The stock closed at a record high of $235.75 on Thursday, up 4.4%, after seven straight days of gains totalling 20%.
• Nvidia’s market cap has hit $5.7 trillion — more than any company in history.
• UBS analyst Timothy Arcuri raised his price target to $275, maintaining a Buy rating.
• Investors have sold Nvidia stock after each of its last three better-than-expected earnings reports.

(SeaPRwire) –   Nvidia (NVDA) heads into Wednesday’s earnings report on a seven-day winning streak, but history suggests the rally could pause immediately once results are released.

NVIDIA Corporation, NVDA

The stock closed at a record $235.75 on Thursday, up 4.4% on the day and 20% over the past week. By Friday premarket, it had already declined — down 2.5% to $229.80.

This upward momentum stems from a combination of factors: broad enthusiasm around AI spending, optimism about a potential deal that might resume chip sales in China, and news that President Trump’s trust invested at least $1 million in Nvidia-linked securities during Q1.

However, the most significant influence will be Wednesday’s earnings release.

UBS analyst Timothy Arcuri increased his price target to $275 from $245 ahead of the announcement, retaining a Buy rating. His target is based on a multiple of 19 times his forecast for Nvidia’s 2027 earnings. In his note, Arcuri pointed out what he considers unusual indifference among large long-only investors — a situation he believes creates favorable conditions for a positive market response if the results meet expectations.

The challenge? Despite beating estimates for three consecutive quarters, investors have sold off the stock following each of those beats.

Why This Earnings Report Reaches Beyond NVDA

Nvidia’s earnings do not only affect its own stock. With a market capitalization of $5.7 trillion — the highest ever recorded by any company, nearly $1 trillion ahead of second place — Nvidia exerts greater influence within cap-weighted indexes than any other constituent.

It represents 8.6% of the SPY ETF. Apple, the next largest holding, accounts for 6.9%.

Last week illustrated this impact clearly: three-quarters of the S&P 500’s weekly gain of 2.3% came from just five stocks: Nvidia, Micron, Apple, AMD, and Intel. Each of Micron, AMD, and Intel rose over 25%. Even though Nvidia’s increase was relatively modest at 8%, it still contributed the most to index performance — even as more than half of all S&P 500 companies posted declines.

This level of market influence makes Wednesday’s announcement essential viewing for anyone invested in the broader market.

The AI Spending Backdrop

The hyperscalers have established the foundation. Alphabet, Microsoft, Amazon, Meta, and Oracle all boosted their AI spending projections in their latest earnings calls. Collectively, these tech giants are now anticipated to invest over $700 billion in AI infrastructure this year — an increase of at least 60% compared to 2025.

Nvidia sits at the core of this spending surge. This year alone, it has announced or expanded partnerships with OpenAI, Marvell, Corning, CoreWeave, Nebius, and IREN. In many cases, Nvidia either made investments in these partners or secured rights in return.

Corning, a glass manufacturer, has emerged as one of the top performers in the S&P 500 this year, driven by rising fiber-optic demand from AI data centers — highlighting how far-reaching the Nvidia effect truly is.

Arcuri noted in his UBS preview that “investor interest here is always obviously high,” but highlighted an atypical lack of engagement ahead of this particular report — which he views as potentially setting up for a strong market reaction.

Nvidia is scheduled to announce its results after the market closes on Wednesday, May 21.