‘$7 Trillion Are Waiting for Nvidia to Report Earnings,’ Says Analyst

A strong earnings report from chipmaker Nvidia (NVDA) could help fuel a broader rally in U.S. stocks, especially with about $7 trillion still sitting in cash funds, according to BBVA strategists. Indeed, analyst Michalis Onisiforou noted that institutional investors, such as hedge funds and mutual funds, are still underexposed to tech stocks, while Trend-following funds are neutral right now. At the same time, volatility control funds also have room to take on more stock exposure, which sets the stage for increased stock buying.

It is worth noting that the S&P 500 (SPY) has climbed since its April lows thanks to optimism around reduced trade tensions, but it dropped last week due to concerns about the U.S. fiscal deficit and renewed tariff threats. Interestingly, investors are now focused on Nvidia’s upcoming earnings report on Wednesday, since the $3.2 trillion company is seen as a key indicator of demand for artificial intelligence. Therefore, the results could heavily influence the direction of the broader stock market.

However, Nvidia’s stock has surged about 40% in the last seven weeks. And although its current price-to-earnings ratio is about 28 (well under its five-year average of 40), Onisiforou warned that Nvidia may be nearing overbought levels. As a result, this could make it harder for the earnings report to impress investors. Nevertheless, analysts expect Nvidia’s Q1 FY26 earnings per share to jump by 20% to $0.73, while revenue is expected to climb about 66.5% to $43.3 billion.

Is NVDA a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 32 Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NVDA price target of $164.21 per share implies 21.3% upside potential.

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