Should You Buy Nvidia (NVDA) Stock Before May 20 Earnings Release?

Key Takeaways

Table of Contents

Shares of Nvidia declined 0.7% during Monday’s premarket session to $213.64, just shy of the all-time closing high of $216.61 reached on April 27.
While NVDA has gained 15% in 2025, competitors Intel (INTC) and AMD have posted stronger returns, fueled by growing demand for CPUs in AI inference applications.
Analyst Richard Windsor notes that the AI investment narrative has evolved, with electricity supply and CPUs replacing chip availability as primary constraints.
Warm Springs Advisors reduced its Nvidia holdings by 4.8% in Q4, yet the stock remains the fund’s largest position at 13.9% of total assets.
All eyes are on Nvidia’s quarterly earnings announcement scheduled for May 20.

Nvidia’s shares have demonstrated impressive strength throughout 2025, yet an intriguing trend is emerging. The semiconductor powerhouse that essentially created the AI investment boom is now being overtaken by several industry competitors.

NVIDIA Corporation, NVDA

Shares fell 0.7% to $213.64 during Monday’s premarket session. Friday’s closing price of $215.20 came remarkably close to the record closing mark of $216.61 established on April 27.

Nvidia’s year-to-date performance shows a respectable 15% gain. However, that figure loses some luster when compared to the trajectories of Intel and AMD. Both chipmakers have experienced significant upward momentum, benefiting from growing enthusiasm surrounding their central processing units’ role in AI inference applications.

Richard Windsor, an independent technology analyst behind the Radio Free Mobile blog, offered a blunt assessment: “The gold-plated investment in AI is now stagnating, while the second in line are making new highs almost every day.”

Windsor observed that the market’s focus has pivoted away from semiconductor supply constraints as the primary challenge in AI deployment, now centering on electricity availability and CPU capacity as emerging obstacles.

Institutional Holdings and Wall Street Sentiment

Warm Springs Advisors trimmed its Nvidia stake by 4.8% in the fourth quarter, disposing of 4,872 shares. Despite this reduction, the investment firm maintains 96,419 shares valued at approximately $17.98 million — keeping Nvidia as its top holding, representing 13.9% of its overall portfolio.

Institutional investors and hedge funds collectively control 65.27% of Nvidia’s outstanding shares. Wall Street analysts maintain a consensus “Buy” recommendation, with 48 analysts rating it Buy and 4 assigning Strong Buy ratings. The average price objective stands at $275.25. Cantor Fitzgerald maintains a $300 price target, while Royal Bank of Canada projects $250.

Critical Developments Ahead

Nvidia’s previous quarterly results, unveiled on February 25, exceeded Wall Street expectations on both earnings and revenue metrics. The company delivered earnings per share of $1.62 versus the $1.54 consensus estimate, while revenue reached $68.13 billion compared to projections of $65.56 billion. Revenue climbed 73.2% compared to the prior year.

Goldman Sachs allegedly reaffirmed its Buy recommendation before the forthcoming report and increased its earnings forecast. The May 20 earnings release represents the next major milestone that market participants are monitoring closely.

The company commands a market capitalization of $5.23 trillion. Its 12-month trading range spans from a low of $115.21 to a recent peak of $217.80. The 50-day moving average currently sits at $187.59.

Nvidia recently unveiled strategic collaborations with Corning and IREN, with market observers highlighting these alliances as evidence of the company’s strategy to strengthen its position across AI infrastructure.

Regarding insider transactions, board member John Dabiri divested 3,004 shares in March at $184.90 per share, while Executive Vice President Ajay K. Puri sold 300,000 shares at $182.25. Total insider selling activity over the past three months exceeded 906,000 shares, representing approximately $162.8 million in aggregate value.

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