NVIDIA gains steam ahead of first-quarter earnings. NVDA-focused ETFs are in focus as AI demand and new chip launches drive investor optimism.
Today's stock market is as different as it can be from the one that most investors are used to seeing in the past. The new market regime requires participants to be more aware of what is happening everywhere, lest they miss out on life-changing opportunities or overstay their welcome when things are going well and give up most (if not all) of their gains back to the marketplace.
Don't expect upside to Nvidia's guidance as China restrictions come into play, one analyst said.
It is not every day that a stock soars over 164%, but that is exactly what happened to little-known chip company Navitas Semiconductor NASDAQ: NVTS on May 22. The stock exploded in value after announcing a partnership with chip giant NVIDIA NASDAQ: NVDA.
NVIDIA Corporation NVDA will report its fiscal 2026 first-quarter results on Wednesday, after market close. Trade disputes and competition from Chinese counterparts may weigh on NVIDIA, but advances in the field of artificial intelligence (AI) could help the company generate another quarter of revenue and profit growth.
There are high expectations for NVIDIA's NASDAQ: NVDA Q1 performance ahead of the earnings release, but perhaps not bullish enough. The market is poised to surge 50% or more with a positive catalyst, and it appears one is on the doorstep.
Kevin Green kicks off the holiday shortened week with a full dive into the top storylines of the week. He looks at the weekend developments out of the White House, as a 50% tariff hike on the E.U.
Nvidia Corporation remains the backbone of AI development, with strong growth in Compute & Networking and a promising future in automotive and robotics. Q1 '26 earnings are expected to impress, driven by Blackwell chip sales, despite near-term margin pressure from ramping up production. The automotive segment is emerging as a major long-term growth catalyst, fueled by partnerships with top automakers and rapid autonomous vehicle market expansion.
Nvidia was rising with the chip maker set to post its first-quarter results after Wednesday's close.
Nvidia faces major risks from escalating US-China trade tensions, with Chinese competitors rapidly gaining market share and threatening Nvidia's international growth prospects. The company's premium pricing and high valuation multiples are unsustainable as the GPU market shifts toward total cost of ownership and lower-cost alternatives. Recent margin compression and negative EPS revisions signal that Nvidia's forward growth will likely underperform, justifying a strong sell rating ahead of earnings.
Heading into first quarter earnings, NVIDIA continues to dominate AI chips. However, it is in the process of losing one of its biggest markets: China. China was responsible for 13% of NVIDIA's sales in the last fiscal year. Other segments could grow enough to make up for losing China, but it wouldn't be easy.
Downgrading Nvidia to "Hold" from "Buy" ahead of Q1 FY2026 earnings due to emerging concerns about future price action despite recent outperformance. Q1 EPS faces pressure from H20 chip export ban charges ($5.5B initial, potentially $15B annually), impacting gross margins despite expected top-line beat and Blackwell ramp. Rising long-term competition from AMD, Chinese players like Huawei, and hyperscalers (Meta, Google) developing custom ASICs could soon impact NVDA's market dominance.