Nvidia has climbed 28% since hitting a low in late March, and the stock is now trading around $211.50. Goldman Sachs analyst James Schneider reaffirmed a Buy rating and a $250 price target ahead of the company’s fiscal Q1 earnings on May 20.
Schneider ranks in the top 3% of Wall Street analysts and says he expects a “beat-and-raise quarter.” That expectation is backed by positive supply chain signals from TSMC and SK hynix, plus expanding capital spending plans from major U.S. cloud providers.
Still, Schneider is clear-eyed about the setup. He says the “bar for stock outperformance is relatively high” heading into the print. The stock has lagged peers and currently trades at a meaningful discount to where it has historically been valued.
At a P/E of 42.3 and a PEG ratio of just 0.6, some analysts see the stock as undervalued. Goldman Sachs raised its estimates by roughly 12% on average and now sits 14% and 34% above Street consensus for 2026 and 2027.
One of the biggest items on the watch list is Nvidia’s $1 trillion datacenter revenue outlook, which was laid out at GTC 2026. Investors will be looking for incremental contributions from products not yet included in that framework.
Those include Rubin Ultra, Vera CPU-only racks, and inference-optimized configurations like Rubin-CPX. CPU-only racks are expected to begin shipping in the second half of 2026, adding a newer revenue layer to the story.
Schneider is watching closely for management commentary on the agentic AI adoption curve and what it means for CPU-based rack systems. He called out this as a medium-term opportunity that could expand Nvidia’s addressable market.
Gross margins will also be closely watched. As the Rubin architecture ramps in the back half of the year, Goldman Sachs expects Nvidia to reaffirm mid-70% margins for calendar year 2026.
Rising input costs are a consideration, but recent data showing roughly a tenfold generation-over-generation cost improvement with Blackwell supports the margin outlook for now.
On competition, Schneider expects Nvidia to reiterate its position as the leader in delivering the lowest inference costs, helped by its annual product cadence. Custom ASIC competition remains a topic investors will probe on the call.
Demand from non-hyperscaler customers — including OpenAI, Anthropic, and sovereign AI programs — will also get attention. These customers represent an expanding part of the revenue mix.
Over the past year, Nvidia has delivered a 78% return on the back of 65% revenue growth. Goldman Sachs sees positive estimate revisions and multiple re-rating as the drivers of further outperformance over the next 12 months.
Wall Street’s average price target is $274.38, implying about 30% upside from current levels. Of 42 analysts covering the stock, 40 have a Buy rating, with one Hold and one Sell — a Strong Buy consensus.
Nvidia reports fiscal Q1 results on May 20.
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