Nvidia’s Anticipated First Quarter Earnings Report
Following the much-anticipated reveal of its new chip, Blackwell, in March, Nvidia is poised to announce its first quarter earnings on Wednesday. The company’s stock price is on the brink of reaching an all-time high, with shares trading at around $953, a notable increase of 0.8% during Thursday morning trading. However, Nvidia experienced a slight dip of approximately 1.8% on Friday afternoon, settling at around $926.
Market Expectations and Analyst Insights
Prior to the earnings announcement, Wall Street analysts conducted a FactSet poll estimating Nvidia’s first quarter revenue to be $24.5 billion. Conversely, KeyBanc equity research analyst John Vinh predicts that Nvidia may report revenue closer to $26 billion for the quarter, with a second quarter guidance of around $28.5 billion. Vinh highlighted, “Despite anticipation of next-generation Blackwell GPUs in the second half, we see limited signs of a demand pause and expect Nvidia to report first-quarter results and second-quarter guidance meaningfully above expectations.”
Moreover, analysts at Bank of America Global Research foresee strength in Nvidia’s upcoming earnings report, anticipating volatility in the stock due to factors such as “quarterly deceleration ahead of Blackwell” and increased reliance on the Chinese market. Harsh Kumar from Piper Sandler also expressed confidence in Nvidia’s performance, stating, “We continue to see strong demand for NVDA’s data center products and feel the company is set up for another beat and raise quarter.”
Similarly, Citi analysts project “smaller beats vs the prior few quarters on larger numbers, shorter H100 lead times, and gross margin normalization before GB200 volume ramps in 1H25.” The overall sentiment among analysts is positive, with a consensus that Nvidia is well-positioned for a successful earnings report.
Market Performance and Future Outlook
Since the announcement of the Blackwell chip at the GPU Technology Conference, Nvidia has attracted interest from tech giants like Microsoft and Google who are incorporating the chip into their AI initiatives. In February, Nvidia became the first chipmaker to achieve a $2 trillion market cap and climbed to the position of the third most valuable company globally in March. This success can be largely attributed to the H100 chip, which powers some of the most advanced AI models worldwide.
Noteworthy is Nvidia’s stock performance, which has surged by approximately 92% year-to-date. Following the company’s fourth quarter earnings report in February, shares experienced a rally, leading to an impressive revenue of $22 billion, marking a substantial increase of nearly 270% from the previous year. Over the past 12 months, Nvidia’s stock has seen a remarkable rise of 192%, showcasing strong investor confidence in the company’s future prospects.
Image/Photo credit: source url