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Nvidia stock rallies ahead of May 20 earnings after UBS lifted its $245 price target. The analyst hike signals confidence that the chip giant will crush expectations. Wall Street is bracing for explosive results from the world’s most dominant AI company.
🔥 Quick Facts
- UBS Target: $245 suggests 12% upside from current levels
- Earnings Date: May 20, 2026 at 2 p.m. PT
- Goldman Sachs Forecast: $2 billion revenue beat expected in Q1
- Revenue Guidance: Nvidia targeting over $300 billion calendar 2026
UBS Takes Bold Stand Ahead of Nvidia Earnings
Timothy Arcuri, UBS’s top-ranked chip analyst, published an upbeat research note Tuesday reiterating a buy rating and maintaining his $245 twelve-month target price. This suggests the stock has runway to climb from recent trading levels. The analyst emphasized robust AI infrastructure demand and Nvidia’s dominance in the GPU market. Arcuri assigned a 19x valuation multiple to justify the target, signaling he believes earnings growth will justify higher prices.
The timing of UBS’s bullish call matters enormously as the market digests pre-earnings positioning. Competition from AMD and other chip makers continues, yet demand for Nvidia’s AI chips remains insatiable. Major cloud providers and hyperscalers are pouring billions into GPU infrastructure. Arcuri’s confidence reflects Wall Street’s view that Nvidia’s growth runway extends well beyond the next few quarters.
NVDA stock rallies as UBS hikes price target ahead of May 20 earnings report
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Goldman Sachs Expects Strong Beat on May 20
Goldman Sachs analyst James Schneider is forecasting Nvidia will beat the consensus revenue estimate by approximately $2 billion. Market expectations peg Q1 revenue near $78.8 billion, but Schneider’s forecast targets closer to $80 billion in total quarterly sales. This beat-and-raise dynamic has become Nvidia’s trademark across the past four quarters. The company consistently exceeds investor expectations and raises forward guidance, fueling stock rallies post-earnings.
Goldman lifted Nvidia’s EPS estimates by 12% in recent days, acknowledging accelerating demand trends. Management’s ability to deliver both strong current results and forward guidance improvements has earned investor trust. Analysts now expect earnings of $1.76 per share for Q1 2027, supporting higher stock valuations as momentum builds toward the report.
Revenue Trajectory Supports Bullish Targets
| Metric | Value |
| FY2026 Revenue | $215.94 billion (65% YoY growth) |
| Gross Margin | 75.2% non-GAAP |
| Free Cash Flow | $96.58 billion |
| Calendar 2026 Guidance | Over $300 billion |
Nvidia guided to revenue exceeding $300 billion for calendar year 2026, which represents fiscal 2027 for the company. This ambitious target reflects explosive demand for AI data center chips and accelerating AI deployment worldwide. Free cash flow reached $96.58 billion in fiscal 2026, demonstrating the company’s ability to convert revenue into shareholder returns. The 75.2% gross margin shows pricing power remains intact despite increased competition.
These financials support analyst confidence in higher stock prices. A company generating nearly $100 billion in annual free cash flow while targeting over $300 billion in revenue commands premium valuations. Investors are betting Nvidia will continue winning market share as data center spending accelerates across cloud giants like Microsoft, Amazon, and Google.
“Goldman Sachs reiterated buy on Nvidia with a $245 price target, citing robust AI demand and the company’s unmatched position in the datacenter GPU market.”
UBS and Goldman Sachs Research
Stock Momentum Builds Ahead of Report
Nvidia stock surged 31.92% across April and early May 2026 after breaking out of a bullish chart pattern on May 6. The stock recently touched new all-time highs as investor sentiment shifted sharply positive. Prediction markets are pricing in continued strength through the earnings report, with many traders betting on post-earnings rally potential. The stock’s breakout suggests technical buyers are following the fundamental momentum.
The rally reflects confidence that Nvidia will deliver beat-and-raise results that justify higher valuations. Sentiment among institutional investors has turned decidedly bullish. Recent analyst upgrades from Bernstein, Rosenblatt, and other shops have added fuel to the fire. Multiple analysts point to hyperscaler AI spending acceleration and sustained demand for next-gen Nvidia chips as reasons to maintain buy ratings.
What Will Drive the Stock Higher After May 20?
The critical catalysts for post-earnings gains rest on whether Nvidia delivers results, raises forward guidance substantially, and addresses investor concerns about competition and market saturation. Management commentary on Q2 2027 revenue outlook will set the tone for the entire setup. If guidance comes in above $87 billion, expect celebration on trading floors. Investors want CEO Jensen Huang to reaffirm the company’s dominance and paint a rosy picture of AI spending throughout 2026 and beyond.
The path to UBS’s $245 target appears clear if Nvidia maintains its growth trajectory and market share leadership. Bull markets in mega-cap stocks often extend longer than bears expect, especially when fundamentals support valuations. The May 20 earnings call at 2 p.m. PT could reignite investor enthusiasm. Watch carefully for any cautionary comments on demand, supply chain constraints, or competitive threats. Street confidence currently rests on Nvidia’s ability to sustain 30%+ revenue growth through 2027.
