Ahead of Nvidia Corp.'s (NASDAQ:NVDA) highly anticipated first quarter earnings report on May 20, top Wall Street analysts are signaling that the artificial intelligence (AI) juggernaut remains dramatically undervalued despite trading near recent all-time highs.
Wall Street’s Cheapest Bet
Cantor Fitzgerald's CJ Muse strongly defended the chipmaker’s current valuation, noting that the stock’s recent relative stagnation has left it remarkably affordable for long-term investors.
“Nvidia right now is trading 15 times… what we think they’ll earn next year,” Muse told CNBC, explicitly identifying Nvidia as the “cheapest name” within the firm’s semiconductor coverage.
Beyond predicting a standard “beat and raise” quarter, Muse expects Nvidia to announce a massive share buyback program exceeding 5% of its outstanding shares.
Altimeter’s Brad Gerstner, also in conversation with CNBC, echoed this bullish sentiment, emphasizing that Nvidia has been hiding in plain sight with the most attractive forward earnings multiple in the entire AI complex.
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A Looming Financial Spectacle
While the broader market has occasionally grown complacent regarding Nvidia’s consecutive stellar quarters, experts believe the upcoming financial print will shatter expectations yet again.
Epistrophy Capital Research Chief Market Strategist Cory Johnson predicts an absolute financial blowout next week. “It’s going to be a great call with great numbers that are going to make the jaw drop again,” Johnson told Schwab Network.
He pointed out that the company is successfully expanding its ecosystem far beyond core GPUs into high-margin optical networking and inference power management.
Unbounded Demand Shrugs Off Rivals
The core driver behind these explosive expectations is an insatiable global appetite for AI hardware as tech infrastructure shifts rapidly toward token production and inference.
CJ Muse notes that Nvidia’s compute infrastructure remains completely “sold out,” heavily insulated by its tightly secured manufacturing allocation at Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM).
Even as skyrocketing prices push hyperscalers like Amazon.com Inc. (NASDAQ:AMZN) and Google-parent Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) to design in-house chips, and competing startups like Cerebras Systems Inc. (NASDAQ:CBRS) in the public markets, Nvidia is poised to easily maintain its global dominance by selling every single unit it can physically manufacture.
How Has NVDA Performed In 2026?
In comparison with the Nasdaq Composite’s 12.87% year-to-date advance, shares of NVDA have risen by 20.82% over the same period. It closed 4.42% lower on Friday at $225.32 per share.
Over the last month, NVDA was up 13.30%, and it rose 18.48% and 67.11% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the short, medium, and long terms, with a poor value ranking.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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