By Wall Street Breakfast
Publication Date: 2026-05-17 18:29:00
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Nvidia earnings test AI demand and priced-in investor expectations. (0:17) Fed minutes will reveal dissent details. (1:30) SpaceX IPO speculation rises as prediction markets remain skeptical. (2:01)
It’s Nvidia (NVDA) week as the world’s largest public company reports earnings on Wednesday.
Analysts expect Q1 EPS of $1.78 on $79.17B in revenue. GPU demand remains the central focus, but guidance will likely determine the stock’s reaction.
Seeking Alpha analyst Louis Gerard, who has a Strong Buy rating, says he is adding shares ahead of the report, though he cautions that perfection is priced in and a clean beat-and-raise is needed for further upside. He is also watching for reassurance on hyperscaler spending durability and the successful ramp of Rubin.
On the other side, Tonga Capital — the lone Sell among 28 SA analysts covering the stock — argues Nvidia is already projected to become one of the most profitable companies in modern history, meaning sustained hypergrowth at this scale warrants skepticism.
“The long-term success of AI depends on infrastructure costs falling,” they wrote. “It is hard to reconcile the incentive to reduce the cost of intelligence with Nvidia’s current cost structure.”
Meanwhile, Mott Capital says Nvidia has been in an options squeeze since March. The question now is whether results can overcome the…
