Insights from Financial Experts Regarding Nvidia's Shares Prior to their Earnings Release
Nvidia Set to Report Q1 Earnings Amidst Export Control Challenges
Nvidia Corporation (NVDA) is poised to reveal its fiscal first-quarter results after the market closes on Wednesday, with analysts anticipating yet another impressive revenue increase from the second-most valuable tech company globally.
According to leading analysts, Nvidia is expected to report quarterly revenue of $43.38 billion, marking a 66% year-over-year surge. The company’s adjusted net income is forecasted to stand at $21.29 billion, or 87 cents per share, a significant uptick from $15.24 billion, or 61 cents per share, during the same period last year.
Analysts from Wedbush anticipate Nvidia’s continued growth as a beneficiary of substantial investments in artificial intelligence (AI) infrastructure from tech giants such as Meta (META), Alphabet (GOOGL), Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT). Spending on AI is projected to disproportionately benefit Nvidia, as the company supplies a majority of the AI server value, according to Wedbush analysts.
One topic likely to be raised during the earnings call is sales in China, following the Trump administration's imposition of tighter export controls earlier this year. Nvidia has cited a $5.5 billion charge due to restrictions on its H20 chip, with CEO Jensen Huang dubbing the export curbs a "policy failure" fueling China's acceleration of homegrown AI chip development.
Oppenheimer analysts, however, expect the impact of these restrictions to be relatively minor, observing that China currently contributes only 5% to Nvidia's total revenue. Both Wedbush and Oppenheimer maintain "outperform" ratings for Nvidia stock, with price targets of $175. A majority of the 18 analysts tracked by Visible Alpha hold "buy" ratings for Nvidia stock, with a consensus price target close to $164, suggesting about a 25% upside from Friday's closing price.
Shares of Nvidia have experienced a slight decline this year but remain up by approximately 25% over the past 12 months.
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- The consensus among analysts suggests a significant uptick in Nvidia's Q1 revenue, partially driven by investments in technology sectors, such as artificial intelligence, where Nvidia supplies a majority of the server value.
- Despite challenges with export controls, the impact of these restrictions on Nvidia's total revenue is expected to be relatively minor, according to Oppenheimer analysts, who maintain an "outperform" rating for Nvidia stock with a price target of $175.
- The ongoing growth of Nvidia, a key player in the tech industry, is expected to be fueled not only by its dominance in AI infrastructure but also by the rise in interest in digital assets, as evidenced by the popularity of tokens involved in Initial Coin Offerings (ICOs) in the finance sector.
