Nvidia’s Q1 Earnings Preview: NVDA Stock Targets Record High As Outlook Brightens
Although the prognosis is optimistic, Nvidia's Q1 results and future projections will have a significant impact on whether this rally picks.
Quick overview
- Nvidia's upcoming Q1 earnings report is crucial for the tech sector's rally and future performance.
- The U.S. technology sector is recovering, driven by renewed interest in semiconductors and AI amid favorable policy changes.
- A potential rollback of Biden-era chip export restrictions could significantly benefit Nvidia and other American chipmakers.
- Nvidia's strong growth in its datacenter division positions it well for continued success as it approaches key resistance levels.
Live NVDA/USD Chart
Although the prognosis is optimistic, Nvidia’s Q1 results and future projections will have a significant impact on whether this rally picks up steam and reaches all-time highs.
Tech Sector Reclaims Strength Amid Policy Shift
After a turbulent February-March period tied to geopolitical tensions and fragile trade negotiations, the U.S. technology sector is showing signs of resilience. Market sentiment has notably improved with renewed investor appetite for semiconductors, AI, and related infrastructure.
The momentum comes partly on the back of policy developments in Washington, where the President Trump’s administration is reportedly planning to repeal a major Biden-era chip export restriction that was due to take effect on May 15. That regulation imposed a three-tiered system limiting exports of advanced AI chips, especially to China and other sensitive jurisdictions.
US Policy Reversal Signals Relief for Chipmakers
The rollback would be a significant win for American chip giants such as Nvidia, potentially easing the strain caused by unsold inventories. Nvidia, for instance, could face an impairment charge of approximately $5.5 billion related to restricted H20 AI processors and other high-end chips meant for the Chinese market.
With this reversal, Nvidia and other U.S. chipmakers may now avoid large write-downs, giving them breathing room to improve their earnings outlook for Q2 and beyond. This is critical ahead of Nvidia’s upcoming earnings release, as forward guidance is expected to carry more weight than past results.
Nvidia Earnings Set to Take Center Stage
Nvidia is scheduled to report its fiscal Q1 results on Wednesday, May 28, and expectations are high. With growing demand for AI infrastructure, increased enterprise adoption, and expanding investment in generative AI systems, the company is widely expected to post another strong quarter.
NVDA Chart Monthly – Resuming Uptrend After Finding Support at the 20 SMA
Its datacenter division has been a key growth engine, surging 93% year-on-year in fiscal Q4, with revenues hitting $35.58 billion — a 16% sequential increase. This segment, which supplies the computational backbone for large-scale AI models, is projected to maintain robust momentum into mid-2025.
Technical Picture NVDA Weekly Chart: Nvidia Eyes New Highs
On the charts, Nvidia shares have broken above the 50-week Simple Moving Average (SMA) around $115, which previously served as a tough resistance zone. This breakout follows a solid rebound from the 100-week SMA seen in April and confirms the continuation of a long-term bullish trend.
NVDA stock reached $136.30 last week and now approaches the next major resistance level at $140. A strong earnings beat could push the stock toward — or even above — its all-time high of $153.13, signaling further upside in the broader semiconductor space.
Outlook: Investors Eye Chips as Key Market Catalyst
With the geopolitical tone softening and trade policy becoming more favorable, the tech sector — and semiconductors in particular — are regaining their leadership role in U.S. equity markets. Nvidia’s earnings and forward guidance will be pivotal in determining whether this rally can gain further traction or hit resistance near recent highs.
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