NVIDIA Corporation (NVDA) is once again the center of Wall Street's attention as earnings approach. On Monday, analysts are buzzing about China developments, AI demand, and the chipmaker's dominant position. Cantor Fitzgerald's C.J. Muse is particularly bullish, reiterating an Overweight rating and a $350 price target.
Speaking on CNBC Friday, Muse argued that NVIDIA's opportunity goes beyond just selling chips into China. The real long-term play, he said, is expanding the company's CUDA software ecosystem within Chinese products. That could prove more strategically important than hardware sales alone.
Ahead of NVIDIA's earnings report on May 20, Muse expects another 'beat-and-raise' quarter. He also hinted that NVIDIA could announce a major share repurchase program, which he believes could become a meaningful catalyst for the stock. 'We would wholeheartedly buy NVIDIA into earnings, after earnings, and throughout 2026 and 2027,' Muse said.
Muse noted that compute demand remains sold out across the semiconductor industry, with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) representing a key supply constraint. NVIDIA's dominant relationship with TSMC positions it favorably, even as investors debate increasing competition in the AI chip market. He also pointed out that many long-only investors remain underweight NVIDIA despite the stock's recent rally, and that the stock still appears inexpensive relative to its expected earnings growth. 'It's the cheapest name in my coverage universe based on forward earnings,' Muse said.
Investor sentiment got a boost after reports indicated the U.S. cleared several Chinese firms to purchase NVIDIA's H200 AI processors, reviving optimism about potential China-related sales growth. Options traders have also increased positioning ahead of earnings. SpotGamma founder Brent Kochuba told CNBC on Friday that markets are 'attempting to reprice China reopening to NVIDIA.'
NVIDIA shares have rallied sharply in recent weeks as investors bet that AI infrastructure demand and geopolitical developments could support another growth phase. The stock is scheduled to report quarterly results on May 20. Wall Street expects earnings of $1.76 per share, up from 96 cents a year earlier, and revenue of $79.08 billion, compared with $44.06 billion in the prior-year period.
The stock trades at about 46 times forward earnings, reflecting a premium valuation relative to peers. The analyst consensus rating remains Buy, with an average price target of $286. Recent analyst actions include TD Cowen maintaining a Buy rating and raising its price target to $275 on May 15, UBS Group maintaining a Buy and raising to $275 on May 14, and RBC Capital Markets maintaining an Outperform rating and a $250 target on May 14.
As of premarket trading Monday, NVIDIA shares were up 0.70% at $226.89, approaching their 52-week high of $236.54.
