By Adam Clark
Nvidia looked set for another decline on Tuesday with the semiconductor sector feeling the pressure. That might lower the bar for the chip maker's earnings on Wednesday.
Nvidia shares were down 1.1% at $219.98 in premarket trading. If the move holds, it will mean a three-day losing streak has taken the stock down from its recent closing high of $235.74 last Thursday.
But Wall Street is hopeful that the earnings report will spur a rally. Wedbush analyst Matt Bryson reiterated an Outperform rating and $300 target price in a research note previewing the figures. His target is based on a price-to-earnings multiple of 30 times his forecast for fiscal 2028 earnings, plus net cash.
"We fully expect the leading supplier of AI silicon will again exceed estimates and guide above Street given continued positive data points," Bryson wrote. "The question rather is will we finally see a more positive stock reaction after a series of blasé moves following solid prints."
The market is looking for an earnings beat with quarterly revenue of more than $80 billion and guidance for second quarter revenue of closer to $90 billion, according to the Wedbush analyst.
Nvidia was a recent Barron's stock pick.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
May 19, 2026 06:23 ET (10:23 GMT)
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