<\/p>\n
Nvidia (NVDA) is a semiconductor giant and artificial intelligence king. It makes GPUs, CPUs, AI inference accelerators, and networking solutions (which are becoming increasingly more important).<\/p>\n
The company divides its revenue sources into five end markets: Data Center, Gaming, Professional Visualization, Automotive, OEM, and Other.<\/p>\n
The stock is up approximately 15.3% year to date, at the time of writing, Friday afternoon, May 8, trading near $215 according to Yahoo Finance. Meanwhile, the SPDR S&P 500 index (SPY) is up 8.1% in the same period.<\/p>\n
The latest good news moving the stock is Nvidia\u2019s partnership with IREN Limited (IREN) announced on May 7.<\/p>\n
Key facts about the partnership:The companies intend to deploy up to 5 GW of Nvidia AI infrastructure across IREN\u2019s global data center pipeline over time.IREN issued to Nvidia a five-year right to purchase up to 30 million shares of ordinary stock, resulting in a right to invest up to $2.1 billion<\/p>\n
The goal of this partnership is to ramp up deployment of large-scale AI factories by combining NVIDIA\u2019s DSX AI factory architecture with IREN\u2019s expertise across power, land, data centers, GPU deployment, and infrastructure operations.\u00a0<\/p>\n
\u201cAI factories are becoming foundational infrastructure for the global economy,\u201d stated Jensen Huang, founder and CEO of Nvidia, in the press release.<\/p>\n
A big push for AI factories is not surprising, as more than 89% of Nvidia\u2019s revenue comes from data centers. This is shown in the company\u2019s FORM 10-K. In fiscal year 2026, data center revenue hit $193.7 billion, while the total revenue was $215.9 billion.<\/p>\n
However, the whole AI factories strategy consists of offering more than plain AI hardware.<\/p>\n
Goldman Sachs raised Nvidia EPS estimates.<\/p>\n
Shutterstock<\/p>\n
Nvidia unveils Nemotron 3 Nano Omni Model<\/p>\n
Nvidia\u2019s key selling point for AI factories is sovereignty. Data ownership, privacy, and model fine-tuning are among the reasons any company or organization that can afford it would want a sovereign AI.<\/p>\n
However, for full AI sovereignty, the customer needs access to a high-quality open model, and Nvidia solves this with its line of Nemotron AI models.\u00a0<\/p>\n
On April 28, Nvidia launched Nemotron 3 Nano Omni, an open, multimodal model with vision, speech, and language capabilities in a single system. The company said this allows AI agents to deliver faster, smarter responses with advanced reasoning across video, audio, image, and text.<\/p>\n
More Tech Stocks:<\/p>\n
BofA resets Google stock price target after earnings smasherBank of America resets Microsoft stock forecast after earningsBank of America resets Intel stock price target after earnings<\/p>\n
Companies already using the model include: Aible, Applied Scientific Intelligence, Eka Care, Foxconn, H Company, Palantir, and Pyler. Nvidia said that Dell Technologies, DocuSign, Infosys, K-Dense, Lila, Oracle, and Zefr are evaluating the model.<\/p>\n
As Nvidia successfully improves its AI factory strategy, first-quarter earnings are getting closer, with the report set for release on May 20. <\/p>\n
Previous earnings were a smasher, yet the stock still took a dip. The sentiment before earnings seems more positive this time, and Bank of America recently reset its forecast for the stock.<\/p>\n
In a research note shared with me, Goldman Sachs analyst James Schneider and his team updated their opinion on Nvidia stock and earnings expectations.<\/p>\n
Goldman Sachs raises Nvidia EPS estimates ahead of earnings<\/p>\n
The team said they expect a beat-and-raise quarter based on positive industry supply-and-demand information. However, they noted that they believe that the bar for \u201cstock outperformance is relatively high heading into the print\u201d. <\/p>\n
Analysts raised their EPS estimates by approximately 12% on average and noted that the updated calendar-year 2026 and 2027 estimates are 14% and 34% above the Wall Street consensus, respectively.<\/p>\n
Schneider expects Nvidia to deliver an approximately $2 billion revenue beat in Q1 with revenue of $80 billion. He estimates Q2 revenue of $87.68 billion, which is 3% higher than the Wall Street consensus. His Q1 and Q2 EPS estimates (excluding stock-based compensation) are $1.86 and $2.05, which are 7% and 8% above the Wall Street consensus, respectively.<\/p>\n
Analysts noted items on the earnings call that could move the stock:The magnitude of upside to Nvidia\u2019s $1 trillion datacenter guidance at GTC.Potential upside from agentic AI to the server CPU business.Competitive dynamics.Gross margin outlook given rising input costs.<\/p>\n
In a research note shared with me, Schneider reiterated a buy rating for Nvidia stock and the target price of $250, based on a 30x price-to-earnings ratio multiple applied to his normalized EPS estimate of $8.25.<\/p>\n
For Nvidia\u2019s stock multiple to be re-rated, analysts need to see evidence of improving profitability metrics at hyperscalers, the proliferation of agentic AI, and greater visibility into deployments with nontraditional customers.<\/p>\n
Analysts noted key downside risks for Nvidia:Slowdown in AI infrastructure spending,Share erosion due to increased competitive intensity,Margin erosion due to increased competition,Supply constraints<\/p>\n
Related: Morgan Stanley revamps Oracle stock price target<\/p>\n
#Goldman #Sachs #resets #Nvidia #stock #forecast #ahead #earnings<\/p>\n","protected":false},"excerpt":{"rendered":"
Nvidia (NVDA) is a semiconductor giant and artificial intelligence king. It makes GPUs, CPUs, AI…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[259],"tags":[839,1308,1625,1305,335,1307,1306,91],"_links":{"self":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5921"}],"collection":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5921"}],"version-history":[{"count":0,"href":"https:\/\/stock999.top\/index.php?rest_route=\/wp\/v2\/posts\/5921\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock999.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}