Nvidia is due to report fiscal Q1 2027 results for the quarter ended 26 April 2026 on 20 May 2026. The release is expected to be watched as a test of ongoing AI infrastructure demand after a strong rally in technology and semiconductor shares.
Bloomberg consensus estimates point to adjusted EPS of $1.77 and revenue of $78.9bn, implying about 79% year-on-year revenue growth. Data centre revenue is forecast at $73.3bn, about 87% year-on-year growth, with attention on Blackwell supply and early platform timing for Rubin.
Adjusted gross margin is expected to be about 75%. The report may focus on whether supply limits in packaging, high-bandwidth memory, servers and networking affect deliveries or costs.
Forward expectations include FY2027 revenue of $370bn and adjusted EPS of $8.43. This implies about 71% annual revenue growth and about 77% EPS growth versus FY2026 figures of about $216bn revenue and $4.77 adjusted EPS.
Other figures cited include an average earnings surprise of about 15% in recent quarters and a valuation of about 48x trailing earnings. Risks flagged include guidance that fails to exceed expectations, margin pressure, China-related restrictions, slower AI capex, and competition from AMD or in-house chips by large cloud firms.
With NVIDIA’s earnings just two days away on May 20, 2026, the market is positioned for a major move. The Nasdaq 100 has rallied over 9% in the past month, pushing expectations for this report to extreme levels. We see this reflected in the options market, where implied volatility for NVIDIA is hovering around 90%, pricing in a potential post-earnings stock move of more than 10% in either direction.
For traders expecting another massive beat and raise, buying call options or call spreads is the direct approach. However, the high volatility means these options are expensive, demanding a significant price jump just to break even. This strategy is a bet that guidance will be strong enough to justify the recent run-up in both NVIDIA and the broader semiconductor sector.
On the other hand, the primary risk is that a good quarter isn’t good enough, a scenario we saw with some tech earnings back in 2025 where strong results were punished due to in-line guidance. Traders positioning for this could consider buying put options to protect against a sell-off if data centre revenue of $73.3 billion is merely met, not substantially beaten. This is a hedge against the market’s sky-high expectations for growth to continue accelerating.
Given the binary nature of the event, strategies that profit from a large move in either direction, such as a long straddle, could be effective. This involves buying both a call and a put option, betting that the stock will move more than the significant amount already priced in by the market. This is less a bet on direction and more a bet on extreme volatility materialising after the announcement.
Conversely, some may see the elevated volatility as an opportunity to sell premium. If we believe the market is overestimating the potential stock swing, strategies like selling an iron condor could be profitable. This position benefits if NVIDIA’s stock moves less than expected, allowing a trader to collect the premium as volatility collapses after the results are released.
We must also consider the ripple effect across the market. Any perceived weakness in NVIDIA’s report could trigger a correction in other AI-related names and the entire semiconductor sector, which we’ve seen through the SOXX ETF’s 15% climb year-to-date. Therefore, options on broader market indices like the QQQ could serve as a more diversified hedge against a negative surprise.
The most critical factor will not be the past quarter’s numbers but the forward guidance. The market has already priced in FY2027 revenue projections of around $370 billion, implying a massive 71% annual growth rate. Any management commentary that casts doubt on hitting this target could easily overshadow even a record-breaking first quarter performance.
