5-star analyst resets Nvidia stock price target ahead of earnings

5-star analyst resets Nvidia stock price target ahead of earnings Vuk Zdinjak Sun, May 17, 2026 at 2:37 AM GMT+7 4 min read NVDA INTC MU AMD AVGO Nvidia (NVDA) stock closed the May 15 trading session 4.42% down at $225.32, according to Yahoo Finance. There have been many factors that contributed to the rally, including hyperscalers increasing their capital expenditure plans, Bank of America revising its server CPU sales forecasts, and Intel’s Q1 earnings boosting confidence in the semiconductor sector. But why is the semiconductor rally having a hiccup? UBS analysts said in their recent research note that, after conducting quantitative analysis, they found that 8 of the 12 largest global semiconductor companies by market capitalization are extremely crowded long, according to Proactive. They said that hyperscalers are shifting from asset-light to asset-heavy business models. They believe this will lead to a decline in cash flow return on investment (CFROI) over the next three years. BofA resets Google stock price target after earnings smasher Bank of America resets Microsoft stock forecast after earnings BofA and Goldman Sachs reset Marvell stock price targets UBS analysts noted that Nvidia’s CFROI is expected to reach 82% this year. They see this as a risk, as only 0.09% of global stocks have historically sustained returns above 50% for five years, and just 0.02% for ten years. In addition to this UBS warning, Nvidia Q1 fiscal year 2027 earnings are set to be released on May 20. It has become almost a tradition that Nvidia's stock crashes after earnings, despite consistently beating the outlook. Nvidia CEO Jensen Huang explained this phenomenon at the all-hands meeting after the Q3 fiscal 2026 earnings. “If we delivered a bad quarter, it is evidence there’s an AI bubble. If we delivered a great quarter, we are fueling the AI bubble.” It seems the nervousness among semiconductor stock investors peaks near Nvidia’s report, so this might also be causing the dip. Contrary to sentiment, Goldman Sachs raised its EPS forecast for Nvidia ahead of earnings. TD Cowen analyst Joshua Buchalter also updated his opinion on Nvidia stock ahead of earnings, according to Investing. Buchalter is one of the analysts with the best track records out there. His TipRanks profile shows he ranks 69th out of 12,243 Wall Street analysts, with a 72% success rate and an average return of 43.3%. He noted that according to Nvidia’s management, the order pipeline for Blackwell and Rubin products exceeds $1 trillion. He sees this as potential upside to Wall Street consensus estimates and extended visibility. The analyst expects Nvidia to beat its quarterly revenue outlook by approximately $1 billion to $2 billion. Buchalter reiterated a buy rating for Nvidia stock and raised the price target to $275 from $235. The price increase is based on Nvidia’s strong fundamentals and ongoing hyperscaler capital expenditure expansion, as Nvidia continues to hold a majority share of that spending. In a research note from May 13, shared with me, Bank of America analyst Vivek Arya and his team reset the stock price target for AMD, which is one of Nvidia’s competitors, and updated their opinion on Nvidia stock. He ranks as 80th, with a 65% success rate and an average return of 28.5%. Arya reiterated a buy rating for Nvidia stock and raised the price target to $320 from $300, based on a 28 multiple of his estimate for price-to-earnings ratio excluding cash for calendar year 2027, which is within Nvidia’s historical forward year P/E range of 25 to 56. Weakness in the consumer-driven gaming market Larger-than-expected impact from restrictions on compute shipments to China Lumpy and unpredictable sales in new enterprise, data center, and auto markets Potential for decelerating capital returns Enhanced government scrutiny of Nvidia’s dominant market position in AI chips Related: Bank of America revamps Intel stock price target This story was originally published by TheStreet on May 16, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

5-star analyst resets Nvidia stock price target ahead of earnings

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5-star analyst resets Nvidia stock price target ahead of earnings

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