Nvidia’s (NASDAQ: NVDA) upcoming May 20 earnings report is expected to be a major market event, given the chipmaker’s massive $5.5 trillion valuation and unprecedented influence on the sector.
Two days ahead, analysts and investors are already bullish, expecting strong results and guidance as the chip dialogue between Washington and Beijin picks up.
Against this background, KeyBanc raised its Nvidia stock price target from $275 to $300 while maintaining an ‘Overweight’ rating on Monday, May 18.
John Vinh, the author of the research note, cited accelerating demand for the company’s next-gen chips and now expects it to deliver strong results on Wednesday, driven chiefly by quarter-over-quarter Blackwell GPU shipment growth of 150,000 to 200,000 units.
Chip demand will push Nvidia stock higher, KeyBanc analysts say
KeyBanc argues that the Blackwell increase could translate into an additional $5 billion to $7 billion in revenue.
Furthermore, the investment bank also expects Nvidia’s guidance to include an initial contribution from its Rubin platform, estimating it could generate between $3 billion and $4 billion in additional revenue.
On the other hand, while potential approval for China H200 shipments could contribute another $13 billion to $14 billion, the firm believes Nvidia is unlikely to include those figures in its official outlook.
Finally, KeyBanc noted that HBM4 memory supply constraints are easing. Accordingly, it projects Rubin GPU shipments of 1.7 million to 1.8 million units this year.
Is Nvidia stock a buy ahead of earnings?
Wall Street remains overwhelmingly bullish on Nvidia, with several analysts upping their forecasts on the chipmaker over the past week.
Notably, TD Cowen increased its NVDA share price target from $235 to $275 on May 15, while
Cantor Fitzgerald boosted its own target from $300 to $350 on May 14. Similarly, UBS lifted its prediction from $245 to $275 the day prior.
According to the latest analyst data available on TipRanks, of 42 Wall Street firms currently covering Nvidia stock, 40 have rated it a ‘Buy.’ As a result, the consensus rating stands at ‘Strong Buy.’
The average 12-month price target for Nvidia, according to the same analysts, now sits at $280.95, implying roughly 24.7% upside from the last closing price of $225.32.
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