Nvidia Stock Earnings Preview: NVDA advances ahead of Wednesday’s Q1 results
- Nvidia will release fiscal Q1 earnings after the close on Wednesday.
- Wall Street is once again extremely bullish on Nvidia earnings.
- Analyst consensus has Nvidia earnings rising 8% QoQ, 11% on revenue.
- Support sits in $880s, $840 and $765 on daily and monthly charts.
Nvidia (NVDA) is set to unveil its first-quarter fiscal 2025 results on Wednesday after the close, and that’s the main thing on the docket for equity traders this week. Nvidia stock jumped more than 2% at Monday’s open.
Though Snowflake (SNOW), Palo Alto Networks (PANW) and other big names in tech deliver earnings results this week, none but Nvidia’s have the same level of intense, cross-industry focus.
The US equity market is mostly giving short shrift to recent Middle Eastern news of the Iranian president’s helicopter crashing and both Israeli and Palestinian leaders receiving war crime warrants from the International Criminal Court. Oil prices have been mixed to start the week but initially sold off.
Nvidia earnings preview
Shareholders and traders alike have much to look forward to within fiscal Q1 results from Nvidia. The unmatched semiconductor designer in the world has seen extraordinary progress and growing demand for chips used in artificial intelligence (AI) workloads over the past year.
For the quarter ending in late April, Wall Street projects that Nvidia will earn $5.58 in adjusted earnings per share (EPS) and $5.19 in GAAP EPS. The consensus calls for revenue of $24.57 billion.
To put that in perspective, the broadly agreed-upon consensus expects the Santa Clara-based company to report adjusted profits rising 8% from the most recent quarter and 412% YoY. Revenue is expected to gain 11% from the most recent quarter and 242% from the quarter one year prior.
Heading into the earnings release, Stifel analyst Ruben Roy raised his price target from $910 to $1,085 after turning up strong demand anecdotes during channel checks. The H100 and H200 Graphic Processing Units (GPUs) continue to lead the AI market despite the new Blackwell line of GPUs scheduled to be released later this year.
Barclays analyst Blayne Curtis raised his price target on Nvidia from $850 to $1,100 per share. Curtis said the H series of GPUs will continue to receive heavy order flow alongside the Blackwell series.
Nvidia FAQs
Nvidia is the leading fabless designer of graphics processing units or GPUs. These sophisticated devices allow computers to better process graphics for display interfaces by accelerating computer memory and RAM. This is especially true in the world of video games, where Nvidia graphics cards became a mainstay of the industry. Additionally, Nvidia is well-known as the creator of its CUDA API that allows developers to create software for a number of industries using its parallel computing platform. Nvidia chips are leading products in the data center, supercomputing and artificial intelligence industries. The company is also viewed as one of the inventors of the system-on-a-chip design.
Current CEO Jensen Huang founded Nvidia with Chris Malachowsky and Curtis Priem in 1993. All three founders were semiconductor engineers, who had previously worked at AMD, Sun Microsystems, IBM and Hewlett-Packard. The team set out to build more proficient GPUs than currently existed in the market and largely succeeded by late 1990s. The company was founded with $40,000 but secured $20 million in funding from Sequoia Capital venture fund early on. Nvidia went public in 1999 under the ticker NVDA. Nvidia became a leading designer of chips to the data center, PC, automotive and mobile markets through its close relationship with Taiwan Semiconductor.
In 2022, Nvidia released its ninth-generation data center GPU called the H100. This GPU is specifically designed with the needs of artificial intelligence applications in mind. For instance, OpenAI’s ChatGPT and GPT-4 large language models (LLMs) rely on the H100’s high efficiency in parallel processing to execute a high number of commands quickly. The chip is said to speed up networks by six times Nvidia’s previous A100 chip and is based on the new Hopper architecture. The H100 chip contains 80 billion transistors. Nvidia’s market cap reached $1 trillion in May 2023 largely on the promise of its H100 chip becoming the “picks and shovels” of the coming AI revolution.
Long-time CEO Jense Huang has a cult following in Silicon Valley and on Wall Street due to his strict loyalty and determination to build Nvidia into one of the world’s leading companies. Nvidia neary fell apart on several occasions, but each time Huang bet everything on a new technology that turned out to be the ticket to the company’s success. Huang is seen as a visionary in Silicon Valley, and his company is at the forefront of most major breakthroughs in computer processing. Huang is known for his enthusiastic keynote addresses at annual Nvidia GTC conferences, as well as his love of black leather jackets and Denny’s, the fast food chain where the company was founded.
Nvidia stock forecast
The 20-day Simple Moving Average (SMA) has just bullishly crossed over its 50-day counterpart, but everything depends on Wednesday’s earnings call and the subsequent guidance from CEO Jensen Huang.
NVDA daily stock chart
NVDA shares are sitting just below three separate recent range highs, which have all trended down chronologically — a bad sign for bulls. The most recent is the May 16 high of $958.19. Before that was the March 25 range high of $967.66, preceded by March 8’s all-time high at $974.
A miss on Wednesday could send shares down to the $880s, where the 20-day and 50-day SMAs currently swim. Below, there is the $840 support level that held up on a number of occasions in March, April and May.
NVDA monthly stock chart
The lowest support comes at $765. That would be the top trendline from the monthly chart that has been working since August 2020, nearly four years ago. It correctly predicted resistance near $725 back in February and flipped into support on April 19.
Still, it is quite clear based on NVDA stock trending above its 20-day SMA that enough bulls expect a beat, which would surely send shares up above the $1,000 psychological level.
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Author
Clay Webster
FXStreet
Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.
