Nvidia (NVDA) remains one of Wall Street’s favorite AI stocks ahead of its upcoming Q1 FY27 earnings report. Heading into earnings, five-star-rated analyst Chris Caso at Wolfe Research recently reaffirmed Nvidia as his top AI compute pick and raised his estimates. Caso has a Buy rating on NVDA stock at a price target of $275, implying an upside of over 20%. Meanwhile, NVDA stock is up by over 2% in pre-market hours today, hitting fresh all-time highs.
Claim 55% Off TipRanks
Trade NVDA with leverageFor context, NVDA is set to report its Q1 FY27 earnings on May 20, 2026. Wall Street expects the company to post earnings of $1.75 per share on revenue of $78.76 billion, supported by strong demand for Nvidia’s Blackwell chips and Grace Blackwell AI platforms.
Here’s Why Wolfe Is Bullish on NVDA
Wolfe’s latest research note came ahead of earnings reports from AI compute companies such as Nvidia, Broadcom (AVGO), and Marvell Technology (MRVL). Caso noted that earlier this year, investors worried that major cloud companies might slow spending on AI infrastructure and data centers in 2027. However, after April earnings results, he said it is now clear that AI-related capital spending remains strong heading into next year.
The analyst further stated that Nvidia has lagged some other AI chip stocks over the past six weeks. While Advanced Micro Devices (AMD), AVGO, and MRVL posted stronger rallies, Nvidia stock gained about 28% during that period. Still, Nvidia shares are up nearly 67% over the past year.
Caso said this underperformance is mainly due to Nvidia providing less clarity on its 2027 revenue outlook compared with competitors that have offered stronger long-term guidance. He also believes Nvidia’s $1 trillion opportunity discussed at its GTC conference does not fully include future growth drivers, such as new business that has not yet been booked and potential contributions from the Rubin pod architecture. Caso further pointed out that investor sentiment has also been pressured by concerns that NVDA could face stronger competition from custom AI chips and margin pressure from rising memory costs.
Overall, he believes better visibility into Nvidia’s 2027 outlook could help the stock close the recent performance gap with other AI chip companies.
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 $279.28 per share implies 23.67% upside potential.
