Well, today is the day! The excitement is palpable as Nvidia Corporation (NASDAQ:NVDA) prepares to release its quarterly report after the market closes, with both seasoned investors and newcomers eagerly awaiting the Q1 FY 2026 results.
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While the company regularly outshoots both its guidance and the market expectations, the stars might not be aligned this time around due to larger macro concerns and issues specific to Nvidia and its semiconductor peers.
For instance, last month, the Trump administration informed Nvidia that it would need export licenses to sell its H20 GPUs to Chinese customers. As a result, Nvidia has announced that it will absorb approximately $5.5 billion in charges this quarter due to expenses associated with these H20 products.
However, Nvidia is still expected to deliver quarterly revenues around $43 billion – which would represent 66% year-over-year growth. While margins are slated to drop a few percentage points due to costs related to the Blackwell ramp, they are likely to remain north of 70%.
And yet, such are the weight of expectations on the undisputed data center leader that Nvidia’s share price has dropped in the past following earnings releases, even after beating both top- and bottom-line projections.
So, what’s on tap this time?
While top investor Rick Orford foresees some short-term volatility, he firmly believes that Nvidia is one to buy and hold for the long haul.
“Given its prospects and the current market conditions, I think Nvidia will not only recover from the current economic and government setbacks but will catapult even higher,” asserts the 5-star investor, who is among the very top 1% of TipRanks’ stock pros.
Orford explains that aside from its gaming segment, Nvidia’s revenues have been growing across the board. Even here, however, the investor points out that its 11% year-over-year revenue decrease last quarter was due to supply constraints, meaning that there should be improved figures this time around.
Moreover, Orford does not see any threats to Nvidia’s place at the top of the AI pecking order. In other words, this money-maker will keep on powering away.
“Nvidia’s Data Center segment will most likely continue to rake in massive profits from the ongoing AI revolution – can you name a company that can overthrow Nvidia in the next 5 to 10 years?,” Orford asks, rhetorically.
In addition, Nvidia stands to further benefit from the expanding autonomous vehicle market – which offers “massive upside potential.” The company has already inked a number of deals with auto companies, such as Toyota, Tesla, and Mercedes-Benz, among others.
In other words, don’t be distracted by any short-term volatility, sums up the investor, and keep your eyes firmly focused on longer term horizons.
“As a long-term investor, my ‘Strong Buy’ rating for Nvidia is for its long-term prospects only. And yes, that 5+ years and more,” concludes Orford. (To watch Rick Orford’s track record, click here)
You won’t find much disagreement on Wall Street. With 32 Buys, 4 Holds, and 1 Sell, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $164.21 has an upside north of 20%. (See NVDA stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.