Shares of Nvidia (NVDA), which, along with its AI chip, is one of the world’s most valuable companies, are making news again as it prepares to report earnings for Q1 later this week, May 28. What’s catching people’s eyes is not only that the stock has jumped in recent months but also the challenges it may face expanding around the world, especially in China.
Nvidia’s share rose nearly 3 percent to $134.53 in pre-market trading on May 27. The stock did dip slightly to around $131, but in general, the climate is still bullish for the stock. As a leader of the artificial intelligence (AI) chip space, Nvidia has Wall Street excited.
Nvidia shares have risen over 50% since early April. Part of the reason behind the momentum is that AI chip demand is red hot, particularly for use in data centers, cloud computing, and high-tech applications such as generative artificial intelligence and self-driving vehicles.
Technical Indicators Show Bullish Signals
On a technical level, Nvidia’s trade is following a bullish flag continuation pattern. It means that the current price increase may continue, and we could soon see another increase. If Nvidia manages to go above $143 — the level it touched back in February — analysts expect the stock to reach $150.
You’ll find support levels at $121 and $115. Because they line up with past high points and average trends, these levels are considered to be strong. RSI is getting closer to 70, so momentum is strong, although the market is not yet overbought. MACD is also higher than the 0 mark, pointing to ongoing upward strength.
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Earnings Expectations Are High
Watchers of Nvidia believe the Q1 report will be important. According to analysts, revenue is expected to be $43.3 billion this quarter, up 66% from the same quarter a year ago. Adjusted earnings are expected to come in at $0.88 per share, which represents a 44% increase from the last comparable quarter.
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These figures come from really high demand for Nvidia’s AI GPUs. Nvidia is also likely to announce updates about its new Blackwell chip architecture in the earnings call, providing strong proof of its control in AI.
China Concerns Add Uncertainty
Much as there is a strong demand, Nvidia finds itself in a difficult position. Because the U.S. government limited sales of advanced AI chips to China, the company expects to report a $5.5 billion charge. Compared to last year, Apple has seen revenue from China drop by 4 percentage points, from 17% to 13%.
The company’s short-term results could suffer from this regulatory problem. Nvidia has started partnering with more firms in the Middle East, seeking to fill the gap caused by losing others in the industry.
The AI Chip trade to China and its Statistics
On April 9, NVIDIA was restricted by the US Government from exporting its AI chips to China due to licensing issues. According to NVIDIA News, this new regulation imposed by the US has impacted the sales revenue for 2025-26. It incurred a huge operational cost of $4.5 billion to export the H2O Chips to China. However, by that time, the majority of its demand in the Chinese market had been ruined. An approximation of $4.6 billion in revenue was earned through the sales of H2O chips in the first quarter. However, it could have been higher if the remaining $2.5 billion of the Chips hadn’t lost their market demand. The first quarter gross margin fell considerably due to the unexpected $4.5 billion expenses, which could have originally been 71.3%.
What’s Next?
If Nvidia reaches or surpasses the forecast and gives positive direction, its stock may climb over $143 and head towards $150 fairly quickly. However, if the results don’t meet expectations or management appears cautious because of global trade challenges, the stock may fall to $121 or $115. Additionally, it will release the quarterly cash dividend of $0.01 per share to its investors, as part of the share market on July 3.
Nvidia is raising its bar in the Global AI Market
Nvidia is on its way to developing a new intelligent system, which will assist researchers in reasoning. This smart AI technology, named ‘Blackwell NVL72 AI Supercomputer,’ is under development to be presented on a cloud services system. CEO Jensen Huang has mentioned that it is the best system developed under them till now. Moreover, Nvidia has strengthened its roots in the AI Chipmaking industry with its revolutionary inventions and strategies. Additionally, it has observed a considerable growth in its projects and profits in a year. One of these projects was released one year ago, called ‘AI Inference Token Generation’ – still strong as ever.
AI has become a vital part of the world and has no future obligation to fall in its market demand. Therefore, dealing in it is a strategic and profitable business for companies in this era. Nvidia stands in the top ones in the list of the best AI-related companies, which has not foreseen a downfall in the market. Therefore, it makes it a profitable and investable business, which certainly offers consistent returns to its investors. At this point, the share prices of the most-awaited fiscal reports of Nvidia are $0.81 in the market. However, they could have been as high as $0.96 if the licensing issues hadn’t disrupted its demand.
Conclusion
Even so, many people believe in Nvidia’s long-term prospects as a key part of the AI revolution. Nvidia’s success is likely to keep it in the news because of strong technical and fundamental reasons. Its AI infrastructure is now considered one of the strongest bases in the technology industry, due to its reliability. It has established its reputation as one of the fastest-growing tech firms under CEO Jensen Huang.
