By Manali Pradhan, CFA
Publication Date: 2026-05-11 00:00:00
Artificial intelligence (AI) has been the most prominent investment theme on Wall Street over the past few years. Nvidia (NVDA +1.73%) has benefited dramatically from this trend, with the stock up over 640% in the past three years.
But with its next earnings report on May 20, investors are concerned about whether the stock has already run too far or if there is still more upside left.
Here are some reasons why I am considering buying the stock before the numbers come out.
Image source: Getty Images.
Evolving AI demand
Nvidia has guided for revenue of about $78 billion, plus or minus 2%, for the first quarter of fiscal 2027 (ending April 26, 2026). That implies roughly 73% to 80% year-over-year growth, which is an exceptionally strong growth rate for a company of Nvidia’s size.
Today’s Change
(1.73%) $3.66
Current Price
$215.16
Key Data Points
Market Cap
$5.2T
Day’s Range
$212.90 – $217.79
52wk Range
$120.28 – $217.80
Volume
5.2M
Avg Vol
171M
Gross Margin
71.07%
Dividend Yield
0.02%
The company’s recent performance already reflects strong momentum. Nvidia’s revenue soared 73% year over year to $68.1 billion in the fourth quarter of fiscal 2026. The company’s data center business generated revenue of $62.3 billion, up 75% year over year.
While Nvidia has already positioned itself as an AI infrastructure company, the changing nature of AI demand suggests that the growth opportunity may be even larger than it appears today.
Management has highlighted that AI is evolving from content creation…
