Jim Cramer has issued a clear warning to investors that Nvidia earnings may not be enough to satisfy Wall Street, even if the report looks good on paper. Nvidia (NVDA) reports its first-quarter earnings today, May 20, 2026, after the stock market closes.
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High conviction NVDA bears now have this Tradr ETFThis is a massive event because Nvidia is a leader in artificial intelligence (AI), and its performance often dictates the mood for the entire technology sector. Wall Street analysts expect Nvidia to report revenue of about $79 billion, which would be an increase of roughly 80% compared to the same time last year.
The market is currently expecting a record-breaking report from Nvidia. Because the company has performed so well recently, the bar for success is set extremely high. Experienced investors are watching for a pattern where the stock drops in price even after a good earnings report because traders decide to take their profits immediately.
Jim Cramer Shares His Outlook
Jim Cramer, a well-known financial commentator, has cautioned investors about what might happen right after the news is released. He believes the stock price might jump up at first, but then fall as traders sell their shares to lock in gains.
Cramer explained this trend by saying: “The Nvidia pattern we are all now used to: an initial fly-up, lasting 10-12 minutes, then a relentless hammering that takes the stock to where it breaks the chart. Do not be fooled by the first move…”
Investors Track Key Indicators
While Nvidia’s current revenue number is important, most investors are focused on the management’s guidance. This is what the company says it expects to earn in the future. Because Nvidia is so important to the AI industry, its outlook can affect whether other tech stocks rise or fall.
Investors are watching three main things:
- Future Growth: Whether demand for AI chips from big companies like Microsoft (MSFT), Meta (META), and Google (GOOGL) will stay strong throughout the rest of the year.
- Product Updates: News about Nvidia’s new chip systems and how the company is handling its business in competitive global markets.
- The Big Picture: Because the stock market has had a strong run since March, investors are looking for a reason to keep buying. If Nvidia’s future outlook is not perfect, it could cause the stock price to drop, which would likely hurt the broader technology market as well.
Because of this, many traders are using options to protect themselves from a large price swing, as they expect the stock price could move by as much as 6% to 10% in either direction when trading begins again on Thursday.
What Is the Nvidia Stock Forecast for 2026?
Analysts rate Nvidia stock as a Strong Buy, with 40 Buys, one Hold, and one Sell assigned in the last three months. At $281.97, Nvidia’s average 12-month stock price target implies an upside of over 27.8% from the current level.
