NVIDIA's Q1 Earnings to Benefit From AI and Datacenter Growth

NVIDIA Corporation NVDA is set to report its first-quarter fiscal 2026 earnings on May 28, and expectations are high. The company is a leader in artificial intelligence (AI) computing, and its technology plays a key role in powering AI applications across different industries. With strong demand for AI infrastructure, growing use by businesses and increasing investment in generative AI, NVIDIA is likely to post another strong quarter.Click here to know how NVDA’s overall fiscal first-quarter results are likely to be.NVIDIA’s Datacenter Segment Expected to Stay StrongNVIDIA’s datacenter business has been a major reason for its recent growth. In the fourth quarter of fiscal 2025, the segment grew 93% year over year, with revenues hitting $35.58 billion, up 16% from the previous quarter.This strong trend is expected to continue. Our model projects first-quarter datacenter revenues to hit $38.5 billion, indicating an approximately 71% year-over-year increase and an 8% sequential rise. This growth projection is mainly because companies and cloud providers are investing heavily in AI, and they rely on NVIDIA’s GPUs to build and run AI systems.NVIDIA’s latest chip designs, Hopper, Ampere and Blackwell, are powering many AI applications, from training large models to providing quick responses in real time. Big tech companies like Microsoft, Amazon and Google continue to use NVIDIA chips in their AI products and services, helping keep demand high.NVIDIA Corporation Price and EPS Surprise NVIDIA Corporation price-eps-surprise | NVIDIA Corporation QuoteAI Demand Keeps Pushing NVIDIA ForwardGenerative AI is changing how businesses work, creating huge demand for computing power. Whether it's chatbots like ChatGPT, AI content tools or medical research, companies are using AI more than ever, and most of that AI work runs on NVIDIA’s hardware.The global generative AI market is expected to grow rapidly. Research from Fortune Business Insights estimates the market will reach $967.65 billion by 2032, expanding at a CAGR of 39.6%. This growth helps explain why NVIDIA is seeing such strong results.NVIDIA’s chips are used across many industries, including healthcare, automotive, manufacturing and cybersecurity, to power things like digital assistants, smart recommendations and language translation. As more businesses add AI tools, NVIDIA’s products are becoming even more important.NVIDIA expects first-quarter fiscal 2026 revenues to reach $43 billion (+/-2%), underscoring the broad-based strength of AI adoption. This represents a remarkable leap from prior years, as more businesses allocate significant capital toward AI-driven growth initiatives. The Zacks Consensus Estimate is pegged at $42.7 billion, which indicates a whopping 64% increase from the year-ago reported figure.The consensus mark for the first-quarter EPS is pegged at 85 cents, indicating a year-over-year increase of 39%. The stock has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 7.9%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)NVIDIA’s Zacks Rank and Stocks to ConsiderCurrently, NVIDIA carries a Zacks Rank #3 (Hold).Impinj PI, StoneCo STNE and Rambus RMBS are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Impinj, StoneCo and Rambus each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Impinj’s 2025 earnings has been revised upward by 11 cents to $1.68 per share over the past 30 days and suggests a year-over-year decrease of 32.7%. Impinj shares have plunged 39% over the past year.The Zacks Consensus Estimate for StoneCo’s 2025 earnings has moved upward by 17 cents to $1.43 per share in the past 30 days, indicating 5.9% year-over-year growth. StoneCo shares have declined 7.1% in the trailing 12 months.The Zacks Consensus Estimate for Rambus’ 2025 earnings has been revised upward by 14 cents to $2.47 per share in the past 30 days, suggesting a year-over-year increase of 23.5%. Rambus shares have declined 4% over the past year.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.0% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Rambus, Inc. (RMBS): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Impinj, Inc. (PI): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks