Nvidia’s shares have been volatile after earnings events, declining by over 8% following its previous report. However, the stock has a strong consensus rating of “buy” from 71 analysts, with a median target price of $160 per share. This implies 22% upside from the current share price of $131.
The company specializes in accelerated computing, pairing specialized hardware and software to speed up complex data center workloads such as artificial intelligence (AI). Nvidia’s GPUs have over 90% market share in data centers, thanks to its vertically integrated strategy and CUDA software platform. The company is well-positioned to maintain its leadership through the next phase of the AI revolution: self-driving cars and autonomous robots.
Nvidia Drive and Isaac are platforms that support the development of self-driving cars and autonomous robots. Alphabet’s Waymo and Tesla use Nvidia’s technology, while Amazon uses it to train, simulate, and manage its warehouse robots. The recent debut of GR00T N1.5, a customizable foundation model for humanoid reasoning, is expected to strengthen Nvidia’s position in the AI ecosystem.
Analysts expect Nvidia’s first-quarter financial report on May 28 to show 53% revenue growth and 49% non-GAAP earnings growth. However, investors should be cautious of market volatility after earnings events. The stock has declined by over 8% following previous reports, highlighting the importance of monitoring conference calls or reading transcripts for key information.
For long-term investors, buying a small position today may be a good idea, with the potential to add more shares if the price declines post-earnings. However, investors seeking quick profits should avoid the stock due to the many unknowns surrounding its performance.
Source: https://www.fool.com/investing/2025/05/25/buy-nvidia-stock-before-may-28-wall-street-answer