AI (artificial intelligence) chips leader Nvidia (NVDA:NASDAQ) has quietened many of its critics in recent weeks following announcements of plans for next-generation data centres, a series of innovation partnerships and orders for $7 billion worth of its advanced GPUs (graphics processing units) from Humain, the Saudi government-backed AI venture.

In the space of a month the company’s market valuation has soared back over $3 trillion as the share priced rallied 40%. The stock closed at $135.57 on 19 May, putting the market cap at $3.3 trillion.

As Nvidia’s first quarter 2026 earnings close in, Wall Street is predicting another strong set of figures. Koyfin consensus anticipates roughly 75% and 42% year-on-year growth in quarterly revenues and EPS (earnings per share), implying $0.87 EPS on approximately $43.1 billion of sales.

Guidance for Q2 2026 is also expected to be strong, with $1.00 EPS on revenue of $46.1 billion predicted by analysts.

The question facing investors in the short-term is, will this be enough to drive Nvidia’s stock towards all-time highs of $149 and beyond?

‘The stock appears ‘attractive but volatile’, said analysts at Trefis, who highlighted Nvidia’s very strong operating performance and financial condition’.

That volatility warning is crucial for investors to understand, and the share price has traded a wide range this year thanks to uncertainty surrounding the Trump administration’s economic policies. The easing of some restrictions around Nvidia’s ability to sell chips in China, and the 90-day hiatus of some tariffs, have been major reasons for Nvidia’s recent share price recovery, which has played out right across the broader tech industry.

Nvidia's market valuation has been supported by the increasing demand for high-performance GPUs, which are essential for powering advanced AI systems and cloud computing infrastructure.

Nvidia CEO Jensen Huang recently criticised US export restrictions on AI chips, warning that they will cause the US to lose its technology lead. Jensen estimated that the restrictions have resulted in Nvidia missing out on $15 billion of sales, plus $5.5 billion in inventory write-downs. 

Nvidia’s partnership with Saudi Arabia’s Humain, announced on 13 May, has been another significant catalyst for the stock’s rally. The company announced a deal to supply several hundred thousand AI chips to Humain, valued at $7 billion, as part of the Kingdom’s broader plans for AI innovation and strengthen its own cloud computing infrastructure with foreign investment.

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