Will Nvidia (NVDA) Beat Earnings? Oppenheimer’s Five-Star Analyst Weighs In

Chipmaker Nvidia (NVDA) is set to report its first-quarter earnings after the market closes on May 28, and investment firm Oppenheimer is showing some caution ahead of the results. Indeed, five-star analyst Rick Schafer expects Nvidia to beat estimates for this quarter, but says its outlook for the next quarter will likely be “roughly in-line” with expectations. One reason for the cautious view is the recent loss of sales from its H20 chip in China due to trade restrictions.

Nevertheless, Nvidia’s production of its top-tier GB200 rack-scale systems seems to be improving after some early issues. As a result, Schafer said that shipments of the Blackwell 200/300 NVL72 systems are on track to reach or exceed 40,000 units this year. In addition, the newer GB300 (Ultra) system is expected to launch smoothly in the third quarter. Schafer also noted that although Nvidia’s five biggest cloud customers make up about half of its revenue, the company is working to reduce its dependence on just a few customers.

These factors led Schafer to keep his Outperform rating and $175 price target on the stock, saying that Nvidia is still in the best position to benefit from the rise of artificial intelligence. He pointed out that Nvidia has an advantage because it offers both hardware and software, along with a unique rack-level system design. It is worth noting that analysts, on average, expect Nvidia to report earnings of $0.88 per share on $43.3 billion in revenue for the quarter.

Is NVDA a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 34 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $164.51 per share implies 23.5% upside potential.

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