Nvidia (NVDA) is set to unveil its fiscal Q1 2025 earnings after the closing bell this Wednesday, marking a pivotal event in the financial landscape. The anticipation is palpable among investors, with a myriad of earnings reports and Federal Reserve speakers lined up in the milieu.
A trip down memory lane takes us to Nvidia’s fiscal Q1 2024 earnings report, a watershed moment that propelled the company into the exclusive club of $1 trillion market valuation. The earnings and guidance numbers from that report remain etched in the annals of financial history as one of the most remarkable displays of corporate prowess for a company of Nvidia’s stature.
Since that fateful day, Nvidia’s stock trajectory has been akin to a rocket soaring through the stratosphere. Despite minor setbacks, it continues to dominate the S&P 500 index, ranking among the top 5 gainers with year-to-date profits nearing a staggering 89%.
With a historical penchant for volatility post-earnings, many traders resort to option strategies to navigate the Nvidia stock waters. As the market eagerly awaits Nvidia’s quarterly earnings, the focus shifts to Wall Street expectations under the leadership of Jensen Huang, contemplating whether the stock can reach dizzying heights above $1,000.
Nvidia’s Fiscal Q1 Earnings Expectations
Forecasts by analysts paint a picture of Nvidia reporting revenues amounting to $24.5 billion for the quarter ending in April, signifying a monumental 241% year-over-year growth. This follows a remarkable 265% surge in the preceding quarter.
In the prior earnings call, Nvidia had set the revenue midpoint at $24 billion. The company’s track record of surpassing its own guidance and analyst estimates over recent quarters stands as a testimony to its supremacy amidst burgeoning demand for its AI chips.
Key Metrics to Watch in NVDA’s Q1 Earnings
Nvidia’s revenue ascent has scaled triple-digit percentages in the last three quarters, establishing a higher launching pad. Analysts project a gradual moderation in growth in the upcoming quarters, with a 98% year-over-year sales uptick anticipated for the fiscal second quarter.
A segment of the market speculates on a deceleration in revenue growth as Nvidia transitions to the new Blackwell chip unveiled in March. However, insights from Morgan Stanley discount any slowdown, underscoring resilience as Nvidia shifts from H100 chips to Blackwell.
All eyes will once again turn to Nvidia’s revenue guidance and management’s insights on the demand landscape. Bank of America envisions a single-digit sequential revenue lift in the fiscal Q2, alongside an adjustment in gross margins toward a “normalized” range of 75%-76%.
On a brighter note, major tech behemoths like Meta Platforms, Alphabet, Amazon, and Tesla are channeling increased capex towards AI, hinting at heightened procurement of Nvidia’s chips among other components.
Nvidia Stock Price Forecast
Anticipation mounts with analysts raising Nvidia’s target price ahead of the earnings revelation. Jefferies and HSBC have upped their target prices to $1,200 and $1,350, respectively.
Even amidst conservative forecasts regarding growth tapering, Bank of America maintains a “buy” rating with a $1,100 target price for Nvidia.
The mean target price for Nvidia stands at $990.51, reflecting a 7.1% surge from the previous week’s closing figures. Nvidia’s stock has often outpaced consensus target prices, prompting analysts to play catch-up following each earnings disclosure.
Can NVDA Stock Rise Above $1,000?
Nvidia’s mean target price hovers tantalizingly close to the $1,000 mark. Given the market’s exuberant responses to Nvidia’s recent earnings calls, a surge beyond $1,000 in the aftermath of this week’s event would hardly be a shock.
Trading at a next 12-month (NTM) price-to-earnings (PE) multiple of 36.6x, Nvidia’s valuation strikes a delicate balance—not overly lavish, yet not meager either—fueled by the impressive top and bottom-line growth the company delivers.
The landscape portends a future where global AI expenditure is anticipated to witness substantial increments, underscoring the relentless demand for robust chips epitomized by Nvidia’s offerings. While competition looms, primarily from rivals like AMD, Intel, and tech giants like Microsoft, Nvidia’s current supremacy bodes well for sustained success in the “AI boom” epoch.