Nvidia shares rebounded in May due to increased capital spending by cloud companies and revoked AI Diffusion Rule.

From Nasdaq: 2025-05-25 04:15:00

Nvidia shares faced a sharp decline due to concerns about tariffs and export curbs. However, the stock rebounded in May as cloud companies increased capital spending and the Biden-era AI Diffusion Rule was revoked. Nvidia will report its first-quarter fiscal 2026 results on May 28, historically causing stock volatility post-earnings.

With a consensus “buy” rating and a $160 target price, Nvidia is a leader in accelerated computing, particularly in AI with over 90% market share in data center GPUs. The company’s vertically integrated strategy and CUDA software platform position it strongly in the AI market, including self-driving cars and autonomous robots.

Nvidia’s upcoming financial report forecasts 53% revenue growth and 49% non-GAAP earnings growth, with analysts revising estimates lower due to export restrictions and tariffs. While beating the 44% earnings increase expectation may not guarantee a positive market reaction, investors should anticipate volatility and monitor key issues discussed during the earnings call.



Read more at Nasdaq: Should You Buy Nvidia Stock Before May 28? Wall Street Has a Crystal-Clear Answer for Investors.