Nvidia (NVDA) shares have rallied significantly in the build-up to the company’s fiscal Q1 earnings release – and the momentum could extend further following the report on May 28, says Ananda Baruah, a senior Loop Capital analyst. 

The artificial intelligence behemoth is expected to earn $0.82 on a per-share basis in its financial first quarter, well above the $0.58 a share it earned in the same quarter last year. 

At the time of writing, Nvidia stock is down more than 10% versus its year-to-date high. 

What Loop Capital Expects From Nvidia’s Q1 Release

Loop Capital reiterated its “Buy” rating on NVDA shares in a research note this morning, adding the AI stock could hit as high as $175 over the next 12 months. 

According to the firm’s analyst, Ananda Baruah, the chipmaker will report a strong Q1 next week and offer “good enough” guidance for its stock to retain momentum in the back half of 2025. 

However, even if the company’s outlook misses expectations on May 28, its stock is strongly positioned to “look through it,” he told clients on Wednesday. 

Baruah’s bullish call on the AI darling is particularly significant given Nvidia stock is already up some 50% versus its year-to-date low in the first week of April. 

NVDA Shares Stand to Benefit From Recent Deals

Investors should note that Loop Capital’s forecast does not account for deals worth more than 1 million GPUs that Nvidia has secured from the Middle East recently. 

Plus, xAI plans on buying an additional 1.0 million chips from the Nasdaq-listed firm for its new data center in Memphis over the next six to nine months, which may not be baked into Baruah’s estimates either.   

The analyst expects Nvidia stock to “benefit from sell-in economics while having partners quickly move inventory in the following quarters” as well. 

Wall Street Continues to Rate Nvidia Stock at ‘Strong Buy’

Other Wall Street firms agree with Loop Capital’s bullish view on Nvidia stock as well. 

The consensus rating on NVDA currently sits at “Strong Buy” with the mean target of about $166 indicating potential upside of more than 25% from current levels.