NVIDIA’s AI Dominance Positions Stock for Post-May Surge

The tech world is bracing for a pivotal moment in May 2025, as NVIDIA Corp. (NASDAQ: NVDA) prepares to report its first-quarter fiscal 2026 earnings on May 28—a date that could redefine the trajectory of its stock. With AI’s meteoric rise fueling unprecedented demand for its hardware and software, NVIDIA is positioned to deliver results that may push its shares to new heights.

The AI Engine Room: NVIDIA’s Q4 Performance and Outlook

In its fiscal fourth-quarter 2025 report, NVIDIA reported $39.3 billion in revenue, a 78% year-over-year surge driven by its Blackwell AI supercomputers and data center demand. The company’s AI infrastructure, now powering over 75% of the world’s top 500 supercomputers, has become the backbone of generative AI and agentic systems. For Q1 FY2026, NVIDIA forecasts revenue of $43.0 billion, a 9% sequential increase, with margins expected to hold steady at 70.6% (GAAP) and 71.0% (non-GAAP).

Historically, NVIDIA’s stock reacts positively to earnings beats. Analysts project EPS of $0.90 for Q1, up from $0.61 a year earlier, which—if met—could catalyze a post-earnings rally.

The Blackwell Revolution: Why AI Demands NVIDIA’s Hardware

Blackwell, NVIDIA’s AI supercomputer architecture, generated $11 billion in Q4 revenue, the fastest ramp-up in the company’s history. These systems are now deployed by cloud giants like AWS, Google Cloud, and Microsoft Azure, which are scaling AI infrastructure under initiatives like the $500 billion Stargate Project.

The GeForce RTX 50 series, launched in late 2024, adds another layer of growth. With up to 2x performance gains over prior generations, these GPUs are critical for AI-driven gaming, rendering, and professional workflows. NVIDIA’s NVIDIA NIM microservices further cement its lead in democratizing AI tools, enabling developers to build agentic applications on RTX PCs.

Automotive and Healthcare: NVIDIA’s Expanding Horizons

While gaming revenue dipped 22% sequentially in Q4 (to $2.5 billion), NVIDIA is diversifying its growth engine. Its automotive segment, now at $570 million in quarterly revenue, is surging thanks to partnerships like Toyota’s adoption of NVIDIA’s DRIVE AGX Orin platform and Hyundai’s use of its Cosmos AI platform for autonomous vehicles.

In healthcare, NVIDIA’s MONAI Deploy is revolutionizing medical imaging, with collaborations like Siemens Healthineers and Mayo Clinic. These partnerships highlight NVIDIA’s pivot to vertical-specific AI solutions, reducing reliance on volatile consumer markets.

The Analyst Consensus: A “Strong Buy” Backed by Data

With a $43 billion revenue target and a 142% year-over-year data center revenue jump in fiscal 2025, NVIDIA’s financials are firing on all cylinders. Analysts maintain a “Strong Buy” rating (42 out of 45 analysts), with a 12-month price target averaging $700 per share (post-split).

NVIDIA’s data center dominance has outpaced rivals like AMD and Intel, growing from $14.9 billion in fiscal 2021 to an estimated $115.2 billion in fiscal 2025—a 680% increase.

Risks on the Horizon

The gaming slowdown and margin pressures—gross margins dipped to 73% in Q4 from 76% a year earlier—remain concerns. However, these headwinds are offset by AI’s insatiable demand. Even a 50-basis-point margin contraction would still leave NVIDIA’s margins among the highest in tech.

Conclusion: NVIDIA’s AI Monopoly Justifies a Post-May Surge

NVIDIA’s stock is primed to soar after May 1, driven by its AI-driven revenue juggernaut. With Blackwell systems, the Stargate Project, and partnerships in autonomous vehicles and healthcare, NVIDIA is not just a chipmaker—it’s an AI infrastructure monopolist.

The May 28 earnings report will likely confirm its $43 billion revenue target, with Blackwell sales exceeding $11 billion in Q1. Analysts’ $700 price target (a 30% upside from current levels) is achievable if NVIDIA continues outperforming its guidance.

In a world where AI is the new electricity, NVIDIA is the grid. Investors ignoring its post-May potential may find themselves left in the dark.

Data as of April 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.