Nvidia Corporation (NVDA), valued at $2.7 trillion by Tech Behemoth, is set to release another promising earnings report, fueled by its strong performance in AI solutions. The company, known for its cutting-edge graphics, computing, and networking solutions, has grown from its PC graphics roots to become a major player in the artificial intelligence (AI) industry. As it prepares to announce its fiscal Q1 income for 2026, analysts expect a 41.4% increase from the same quarter last year. 

Profits increase as AI and data centers expand

NVIDIA’s strong track record continues to impress, with the company exceeding Wall Street’s bottom-line expectations in the last four quarters. Its previous quarter generated a record EPS of $0.85, outperforming consensus estimates by 7.6%. This expansion is being driven by increased demand for AI and cloud computing solutions, particularly in the data center business. The company reported a 77.9% year-over-year increase in revenue, reaching $39.3 billion in Q4, aided in part by a 93% increase in data center revenue to $35.6 billion. The success of its next-generation AI chip, Blackwell, drove NVIDIA’s strong quarterly performance. 

Despite these short-term fluctuations, Wall Street analysts remain bullish on Nvidia’s prospects, recommending 37 out of 43 as “strong purchases”. The average price target for NVidia stocks is $ 167.80, representing a potential 54.3% increase over current levels. NVIDIA stock has risen 23.9% in the last 52 weeks, outperforming both the S&P 500 index and the technology-focused SPDR fund. Despite this impressive performance, the company’s shares fell 8.5% following its fourth-quarter earnings report. This decline has been attributed to investors’ concerns about low-cost AI models, such as Deepseek from China, as well as the potential impact of geopolitical tensions and tariffs on Nvidia’s supply chains. 

NVIDIA’s Future Outlook

Analysts predict Nvidia’s earnings will increase by 36.9% to 4.01 in FY 2026, compared to FY 2025. In addition, the company’s EPS is expected to grow even faster in fiscal year 2027. Morgan Stanley attributes this growth to Nvidia’s 95% share of the global GPU market, highlighting the company’s dominance in the AI sector. As the global AI boom accelerates, Nvidia’s role in developing the core systems and backbone of AI is critical. The AI Revolution began with Nvidia technology, which powers the generative AI model with its GPU, and will continue with AI applications in healthcare, robotics, and autonomous driving. NVidia’s proactive approach reinforces the company’s expected future growth as a leader in AI computing infrastructure.