Prediction: This Artificial Intelligence (AI) Semiconductor Stock Will Soar After May 28

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As we move deeper into 2025, investors are closely watching Nvidia (NASDAQ: NVDA) ahead of its upcoming Q1 earnings report scheduled for May 28. While the broader stock market and the AI sector have seen some volatility this year, strong signals from major tech companies suggest that Nvidia could be poised for a significant rally.

A Shaky Start to 2025

Despite robust gains in 2023 and 2024—where the S&P 500 and Nasdaq Composite surged by 58% and 87%, respectively—2025 has opened on shakier ground. April saw notable panic-selling in growth stocks, largely driven by investor uncertainty surrounding President Donald Trump's renewed tariff policies.

However, while macroeconomic headwinds have caused some short-term turbulence, the long-term outlook for AI infrastructure investment remains solid—and Nvidia is right at the heart of this booming trend.

Massive AI Infrastructure Spending from Big Tech

In their Q1 earnings reports, several tech giants, including Amazon, Microsoft, Alphabet, and Meta Platforms, reaffirmed their commitment to AI through massive capital expenditures:

• Microsoft’s Azure cloud business grew 35% year over year.

• Amazon and Alphabet increased cloud revenues by 17% and 28%, respectively.

• Together, these three firms are expected to spend $260 billion on AI infrastructure in 2025.

Meta Platforms also continues its aggressive investment in AI, raising its capex guidance for 2025 to a range of $64 billion to $72 billion, up from $39.2 billion in 2024.

Encouraging Signs from AMD

Amid the geopolitical uncertainty around tariffs, AMD remains optimistic. During the company’s Q1 call on May 6, CEO Lisa Su emphasized continued investment in AI infrastructure and anticipated strong growth in the second half of the year. Despite semiconductor stocks being sensitive to trade policy, Su's outlook suggests the AI trend is too strong to be derailed.

Why Nvidia Could Be the Biggest Beneficiary

With nearly every major tech company ramping up AI investment, Nvidia—which dominates the GPU market—stands to benefit greatly. Its graphics chips remain essential to AI workloads, from data centers to edge computing.

Yet despite consistently strong financial performance, Nvidia's stock has underperformed since August 2024, falling around 9%. This disconnect between business fundamentals and stock price movement may present a golden buying opportunity.

Analyst Expectations and Historical Performance

Analysts are forecasting Nvidia’s revenue and earnings to nearly double over the next two years, fueled by AI demand. Historically, Nvidia stock has performed well following earnings reports, and the current macroeconomic narrative could set the stage for a rebound.

While broader market uncertainties have weighed on the stock, Nvidia’s fundamentals remain strong. If Q1 results confirm continued growth, May 28 could mark the beginning of a new leg higher for the chipmaker.

Bottom Line

Nvidia’s stock may have lagged in recent months, but the company's position in the AI ecosystem has never been more critical. With Big Tech doubling down on AI investments and strong leadership from AMD and other players reinforcing the industry's trajectory, Nvidia appears well-positioned to soar following its Q1 report.

For investors with a long-term horizon, this could be a strategic moment to buy into a company that's helping to power the AI revolution.