Nvidia (NVDA) will report its Q1 FY27 earnings on Wednesday, May 20. Ahead of the results, Wedbush’s five-star analyst Matt Bryson expects Nvidia to beat Wall Street’s first-quarter estimates and issue guidance above consensus forecasts. Bryson and his team reiterated their Buy rating on the stock yesterday at a $300 price target, implying roughly 35% upside from current levels.
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Trade NVDA with leverageOverall, analysts expect the company to post earnings of $1.75 per share, up by more than 100% year-over-year. Meanwhile, revenue is expected to be around $78.85 billion, marking a growth of over 75% year-over-year.
Wedbush Predicts Strong Q1 for Nvidia
Bryson said Nvidia “will again exceed estimates and guide above Street given continued positive data points through (the calendar first quarter).” Bryson forecasts Q1 earnings above $1.80 per share versus his previous estimate of $1.74. He also believes revenue could exceed its $78.01 billion estimate by at least $2 billion. For Q2, he projects earnings of $1.84 per share on revenue of $82.12 billion.
Additionally, Bryson believes AI infrastructure spending will remain strong through 2027. He noted that risks still exist, including uncertainty around Middle East projects and future business opportunities in China. However, he sees any eventual resolution of these issues as a potential catalyst for even higher AI spending.
Wedbush Highlights Nvidia’s Supply Chain Strength
At the same time, Bryson highlighted Nvidia’s strong supply chain position despite ongoing shortages across the AI hardware industry, including advanced chips, memory, optical components, and hard drives.
He said discussions with supply chain companies revealed multiple bottlenecks that are slowing AI infrastructure deployments for many firms. However, he noted that Nvidia has so far avoided the major supply chain issues affecting other players in the industry.
Is Nvidia Stock Still a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 40 Buys, one Hold, and one Sell assigned in the past three months. Furthermore, the average 12-month Nvidia price target of $281.59 per share implies 26.6% upside potential.
Year-to-date, NVDA stock has gained 19.21%.
