By TOI Tech Desk
Publication Date: 2026-05-12 04:02:00
Jensen Huang-led Nvidia is set to report its fiscal first-quarter earnings on May 20, and investors are expecting another quarter of strong growth driven by artificial intelligence (AI) demand. The US chip maker is expected to post revenue and profit numbers above Wall Street estimates as demand for AI chips continues to rise. However, recent market reactions to other AI companies, including Palantir Technologies, are showing that strong results alone may not be enough to satisfy investors with very high expectations, as pointed out by private financial and investing advice company, The Motley Fool.The report highlights Palantir’s strong growth with the company recently reporting an 85% jump in revenue to $1.63 billion. Supported by growth in the US government and commercial business, the company also raised its full-year 2026 sales forecast. Despite this, Palantir shares fell more than 8% in the two days after the earnings report. Analysts say the decline highlighted investor concerns about extremely high valuations in AI-related stocks, adding that Nvidia may also lose billions as a result of stock decline following the earnings report on May 20.
Nvidia faces rising expectations and competition
Nvidia continues to dominate the AI chip market with its GPUs and CUDA software platform, which are widely used by companies building AI systems and data centers. Demand for Nvidia hardware remains strong as technology companies continue investing heavily in AI infrastructure.