šŸ§¾ Before You Trust Analyst Ratings, Run This Prompt

June 04, 2025

Every time NVIDIA beats earnings, Wall Street analysts race to upgrade itā€¦ after the move is done.

But what if you could run a deeper check ā€” instantly?

We gave ChatGPT a task: Compare analyst upgrades to NVIDIAā€™s actual performance.

Are the price targets backed by realityā€”or just hype?

šŸ” Hereā€™s the Raw Output from ChatGPT:

šŸ¦ Recent Analyst Activity:

  • Jefferies added NVIDIA to its "Franchise Picks" list, citing dominance in AI accelerators and interest from Middle Eastern governments.

  • UBS issued a bullish note with a $175 target, focusing on long-term AI infrastructure demand.

  • Bank of America raised its price target from $160 to $180, emphasizing strong execution and strategic positioning.

šŸ“ˆ NVIDIAā€™s Actual Earnings Performance (Q1 FY26):

  • Revenue: $44.1B ā†’ +12% QoQ, +69% YoY

  • Data Center Revenue: $39.1B ā†’ +10% QoQ, +73% YoY

  • Gross Margin:

    • GAAP: 60.5%

    • Non-GAAP: 61.0%

    • Excluding $4.5B U.S. export-related charge: 71.3%

  • Earnings Per Share:

    • GAAP EPS: $0.76

    • Non-GAAP EPS: $0.81

    • Without charge: $0.96

šŸ¤” ChatGPTā€™s Evaluation:

ā€œThe recent analyst upgrades appear justified by NVIDIAā€™s strong earnings growth, particularly in Data Center revenue and margin expansionā€”excluding the one-time export-related charge.

However, itā€™s notable that most upgrades followed the earnings release, suggesting they are reactive rather than forward-looking.

If an investor were to act purely on these upgrades now, theyā€™d be entering after the strongest earnings signal has already been priced in.

Risks remain around export restrictions, valuation compression, and AI capex deceleration if macro softens.

Overall, confidence is warrantedā€”but latecomers may face diminishing returns without new catalysts.ā€

šŸ”“ Want This Level of Clarity Before You Buy Your Favorite Stock?

This week, we showed you that ChatGPT can:

  • Cross-check analyst upgrades against real earnings data

  • Spot hidden red flags analysts gloss over (like one-time margin boosts)

  • Understand when upgrades are justified vs. when theyā€™re just noise

We ran it on $NVDA, but you can upgrade to unlock:

  • The full prompt we used in this breakdown, usable for any stock

  • A library of investor-grade prompts to vet analyst notes, earnings calls, and stock presentations

  • Instant access to future breakdowns before the herd reacts

Let AI show you what really matters ā€” first.

Think deeper, not louder.
ā€” StocksTrades.AI Newsletter

Disclaimer: This newsletter is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.