Published: Friday, 15 May 2026 at 12:30 (UK) Markets' top concern – inflation – is likely to remain a key focus in the coming week, with both the UK and Japan releasing consumer price index (CPI) readings for April. Oil prices are on the rise again, heightening the prospect that central banks may need to raise interest rates this year to curb a spike in inflation. On the earnings front, Nvidia will report first-quarter earnings on Wednesday, offering investors an important update on the strength of the AI trade.
Nvidia Q1 earnings
Wednesday 20 May Nvidia is expected to report that Q1 revenue grew 78.6% to $78.7bn, helping to boost earnings 82.9% to $1.76 a share, based on the consensus estimate among analysts. Gross margins are expected to come in at 74.5%. Guidance will also be closely watched. Analysts currently expect Q2 revenue to increase 84.8% to $86.4bn, with earnings set to rise 84.7% to $1.94 a share. Gross margins are expected to expand to 74.8%. The options market implies that shares of the Nasdaq-listed chipmaker – which, at current levels near $235, are up more than 40% from late-March's year-to-date low of $165 – could move 7% in either direction following the Q1 results. Options positioning remains heavily weighted towards calls, reflecting bullish sentiment ahead of the release. Current positioning suggests that resistance is near $250, while support may emerge around the $200 to $205 range. Following the results, implied volatility is likely to decline, which could lead to an unwinding of hedging activity and increased share price volatility. From a technical analysis perspective, the stock appears stretched after posting a fresh 52-week intraday high of $236.54 on Thursday. As the chart below shows, the relative strength index (RSI) is at 76 (a reading above 70 is typically considered overbought territory) and the share price is trading above the upper Bollinger Band, another possible overbought signal. This setup suggests that Nvidia shares could consolidate sideways or move lower after the earnings announcement, with the potential for support to kick in around $210.
