Nvidia (NVDA, Financial) shares were trading about 5% lower for the year on Friday, as investors braced for the company's fiscal first-quarter 2026 earnings set for release after markets close on May 28.
Wall Street is projecting earnings per share of $0.73, up from $0.61 a year earlier. Revenue is expected to reach a record $43.3 billion, compared to $26 billion in the same quarter last year, reflecting the continuing demand for AI chips.
However, the upcoming results will be clouded by a $5.5 billion write-off tied to the company's H20 chips, which were designed for China. U.S. export restrictions blocked sales, leaving a major gap in Nvidia's international sales footprint.
CEO Jensen Huang is expected to address that gap during the earnings call, with particular attention on whether growth from regions like the Middle East, including Saudi Arabia and the UAE, might help offset the China shortfall.
Investors will also look for updates on demand across global AI markets and any strategic shifts in customer base, including potential pivots away from Big Tech toward governments and sovereign buyers.
