NVIDIA, the world’s most valuable company with a market cap of $5.34 trillion, reports its first quarter earnings today — and all of Wall Street is watching.
The stakes are high. Investors are seeing NVIDIA’s results as a critical indicator of AI demand, especially in light of rising Treasury yields and the broader macro uncertainty. Whether NVIDIA will be able to play its anchor role and take the US markets higher, only time will tell.
Expectations: Another Blockbuster?
Markets have high expectations for NVIDIA’s latest results, fueled by a strong rally driven by demand for AI and tech infrastructure. Revenue is projected to increase by almost 80%, reaching approximately $79 billion, based on the median estimate from an LSEG analyst survey.
In the previous result for Q4, NVIDIA posted a record quarterly revenue of $68.1 billion, up 20% from Q3 and up 73% from a year ago. The full-year revenue for fiscal year 2026 was $215.9 billion, up 65%. NVIDIA stock is up 68% in the last 12 months, while the Nasdaq-100 has posted 35% during the same period.
The chip company has consistently exceeded analysts’ expectations and provided optimistic growth forecasts, which may influence the performance of technology stocks and the broader US stock market.
“Investors are right to expect another blockbuster set of numbers. But be warned that even the strongest earnings growth may struggle to fully offset mounting valuation concerns in the current macro environment,” said Nigel Green, CEO of global financial advisory deVere Group.
Will NVIDIA Stock Face Pressure?
Despite positive results, NVIDIA’s stock may still face pressure due to high valuations in the tech sector and rising bond yields. Currently, its forward P/E ratio is between 40 and 45. Investors are concerned as the 10-year US bond yield reached 4.68% — a 16-month high — while the 30-year yield rose to 5.2%, levels last seen in July 2007, before the Global Financial Crisis.
“High-growth tech companies are especially vulnerable to rising Treasury yields because much of their valuation depends on future earnings expectations. As bond yields rise, the discount rate applied to those future profits rises too, reducing the present value investors are willing to pay for expensive growth stocks,” said Green.
The risk of a miss is also real. “Recent results from Microsoft, Meta, Alphabet, and Amazon have reinforced the idea that investment in AI infrastructure remains robust, although they raise questions about sustainability and profitability. As such, any negative surprise from Nvidia could place selling pressure on equities,” said Paolo Broccardo, CEO at BankPro.
Market Risks
Thanks to AI stocks, the US stock market has reached record highs, with the S&P 500 and Nasdaq Composite up 7.4% and 11% respectively since the beginning of 2026. The Dow Jones Industrial Average has surpassed 50,000, reflecting a 3% increase year-to-date.
But the winds are changing direction, at least with rising bond yields. Also, FOMC meeting minutes will reveal if policymakers are considering a gradual shift away from an easing bias and towards a rate hike. Persistent inflation risks, high oil prices, and rising yields may challenge the recent bullish momentum in equities and lead to corrections in the near term.
NVIDIA Stock Price on Radar
NVIDIA, the leading company in the global AI boom, closed at $220.61 on Tuesday. Listed on Nasdaq, the tech-heavy index, NVDA was up nearly 2% in premarket trading ahead of its 1st quarter FY27 financial results to be announced on May 20 at 02:00 PM PT. NVIDIA’s 2026 Annual Meeting of Stockholders will be held on June 24, 2026 at 09:00 AM PT.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. NVIDIA’s stock performance, earnings projections, and valuation metrics mentioned are based on information available at the time of writing and are subject to change. Views and opinions expressed by experts and analysts are their own and do not necessarily reflect the editorial position of this publication. Investing in stocks, including AI and technology sector shares, involves market risk. Past performance is not indicative of future results. Readers are advised to consult a qualified financial advisor before making any investment decisions.