Is NVIDIA (NVDA) Stock Worth Buying Before Its May 20 Earnings Report?

TLDR

• Nvidia stock dropped 0.7% in premarket trading Monday, trading at $213.64, just below its record close of $216.61 from April 27.
• NVDA has risen 15% year-to-date, but this underperforms peers Intel (INTC) and AMD, which are surging on CPU demand for AI inference.
• Independent analyst Richard Windsor notes that market focus has shifted from chip supply to electricity supply and CPUs as the new bottleneck.
• Institutional investor Warm Springs Advisors reduced its Nvidia position by 4.8%, though NVDA still accounts for 13.9% of its portfolio.
• The next major catalyst for the stock is Nvidia’s earnings report on May 20.

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(SeaPRwire) –   Nvidia’s stock has experienced a strong run in 2025, yet an interesting development is unfolding. The semiconductor leader that pioneered the AI boom is now being overtaken by some of its competitors.

NVIDIA Corporation, NVDA

NVDA fell 0.7% to $213.64 in premarket trading Monday. The stock closed Friday at $215.20, slightly below its all-time high of $216.61 reached on April 27.

This year, Nvidia has gained 15%. While that may seem solid, it lags behind both Intel and AMD, which have been climbing significantly due to enthusiasm around their central processing units’ use in AI inference tasks.

Independent analyst Richard Windsor, author of the Radio Free Mobile blog, stated plainly: “The premium investment in AI is now plateauing, while the alternatives are hitting new highs almost daily.”

He further explained that market attention has moved away from chip supply as the primary constraint in AI development, shifting instead toward electricity availability and CPU capacity.

Institutional Activity and Analyst Ratings

Warm Springs Advisors decreased its Nvidia holdings by 4.8% during the fourth quarter, selling 4,872 shares. Even after this reduction, the fund still holds 96,419 shares valued at approximately $17.98 million—and Nvidia remains its largest single holding, representing 13.9% of the portfolio.

On a broader scale, 65.27% of Nvidia stock is owned by institutional investors and hedge funds. From an analyst perspective, the stock maintains a consensus “Buy” rating, with 48 analysts assigning a Buy and 4 issuing a Strong Buy recommendation. The average price target stands at $275.25. Cantor Fitzgerald has set a $300 target, while Royal Bank of Canada offers a $250 target.

What to Watch Next

Nvidia’s previous earnings release, issued February 25, exceeded expectations on both revenue and earnings per share. The company reported EPS of $1.62 against a consensus estimate of $1.54, and revenue of $68.13 billion versus estimates of $65.56 billion, marking a 73.2% year-over-year increase.

Goldman Sachs reportedly reaffirmed its Buy rating ahead of the upcoming results and raised its EPS forecast. The next earnings announcement is scheduled for May 20 and will be the focal point for traders.

The company’s market capitalization is $5.23 trillion. Its 12-month low was $115.21, while the recent 12-month high reached $217.80. The 50-day moving average sits at $187.59.

Nvidia recently announced partnerships with Corning and IREN, with analysts interpreting these moves as part of a broader strategy to strengthen its control over AI infrastructure.

Regarding insider activity, director John Dabiri sold 3,004 shares in March at $184.90, and EVP Ajay K. Puri sold 300,000 shares at $182.25. Combined insider sales over the past three months totaled more than 906,000 shares, valued at roughly $162.8 million.