Investors and analysts eagerly look forward to chip giant Nvidia’s (NVDA) fiscal first-quarter results on May 20 to see whether the company’s AI GPUs (graphics processing units) continue to benefit from robust demand despite growing competition. Ahead of Q1 FY27 earnings, several analysts have raised their price targets for Nvidia stock, citing confidence in the company’s growth potential and strong execution. Top UBS analyst Timothy Arcuri increased his price target for NVDA stock to $275 from $245 and reaffirmed a Buy rating.
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Trade NVDA with leverageMeanwhile, Wall Street expects Nvidia to report EPS (earnings per share) of $1.75, reflecting 116% year-over-year growth. Revenue is estimated to rise 79% to $78.82 billion.
UBS Analyst Expects Market-Beating Q1 Results
Arcuri expects Nvidia to report Q1 FY27 revenue in the $81 billion range, suggesting a beat of about $3 billion compared to the midpoint of guidance at $78 billion. The 5-star analyst expects Q2 FY27 revenue outlook to at least meet investors’ expectations in the range of about $90 billion to $91 billion.
He believes that the company is on track to commence Rubin chip/compute board production this quarter, though some adjustments to rack-level cooling systems might push large-scale rack production into the September-October period. Arcuri doesn’t expect this to be an issue as demand for Blackwell remains robust. As a result, ODMs (original design manufacturers) could continue Blackwell production through the end of the year, helping offset any one-to-two-month delay in Rubin rack production.
Interestingly, Arcuri believes that a key aspect to watch this quarter is whether Nvidia will enhance its shareholder return through repurchases and a higher dividend. He sees the possibility of Nvidia announcing a new share repurchase commitment that could reach $150 billion over the next 12 months. Arcuri added that many investors are seeking a much larger dividend, which, if it occurs, could broaden the shareholder base.
Interestingly, Arcuri ranks no. 1 among more than 12,200 analysts tracked by TipRanks. He has a success rate of 82%, with an average return per rating of 56.6%.
RBC Is Bullish on NVDA Ahead of Q1 Earnings
Meanwhile, RBC Capital analyst Srini Pajjuri reaffirmed a Buy rating on NVDA stock with a price target of $250. Pajjuri expects Nvidia’s Q1 FY27 results and Q2 guidance to be similar to the past three quarters, which saw a 3% to 5% beat and raise. He noted that AI compute demand is surpassing supply, with the trend extending well into 2027.
While component shortages and power/infrastructure availability could weigh over the near term, Pajjuri believes that Nvidia is in a relatively better position from a supply perspective, with its balance sheet strength presenting a structural advantage. The analyst expects management to maintain mid-70% gross margin guidance despite higher memory prices.
“As such, we expect hyperscaler capex to remain healthy through 2027 and are not overly concerned about competition,” said Pajjuri.
With NVDA stock trading at about 21x 2027 EPS estimate, Pajjuri highlighted that the valuation is at about 30% and 15% discount to semiconductor peers and Magnificent 7.
Is NVDA Stock a Buy, Sell, or Hold?
Overall, Nvidia earns a Strong Buy consensus rating based on 40 Buys, one Hold, and one Sell. The average NVDA stock price target of $279.28 indicates 18.5% upside potential.
