NVIDIA Earnings Preview: What Investors Need to Know?

May 17, 2024

As NVIDIA Corporation (NASDAQ:NVDA) approaches its Q1 2025 earnings release on May 22, 2024, the market is abuzz with anticipation. The company has been on a tear, driven by robust demand in the AI and high-performance computing sectors. With Wall Street and investors closely watching, the upcoming earnings could be pivotal in setting the tone for the year.

Here’s what to look out for:

1. Stellar Year-Over-Year Growth Expected

We expect NVIDIA to post a revenue of $24.0 billion, marking an impressive year-on-year (yoy) growth of around 233.8%. This is slightly below the consensus estimate of $24.5 billion, underscoring a slightly more conservative outlook as compared to the broader analysts’ expectations. Regardless of that, this explosive growth highlights NVIDIA’s strong market position and the soaring demand for its GPU technologies.

2. Earnings Surge to Reflect Operational Excellence

On the earnings front, NVIDIA anticipates a non-GAAP EPS of $5.40, which is somewhat lower than the consensus estimate of $5.57. These expectations signal a sharp increase from the $1.09 non-GAAP EPS reported in Q1 2024, reflecting the confidence that analysts have in the company. However, investors need to keep an eye on how actual earnings stack up against these expectations.

3. Blackwell GPUs: A New Revenue Catalyst

The ramp-up of the Blackwell GPU series is anticipated to play a crucial role this quarter. With NVIDIA’s strategy to capture more of the data centre market, the performance of the Blackwell series post-launch will be critical. Successful integration into existing systems could further cement NVIDIA’s competitive edge.

4. Broadening Horizons with Sovereign AI

NVIDIA’s ventures into Sovereign AI are expected to open new revenue streams and diversify its portfolio. The company’s ability to forge high-level governmental relationships and deliver tailored AI solutions could become a significant growth driver moving forward.

5. Sequential Stability and Growth

Unlike typical seasonal trends in the tech industry, NVIDIA is expected to maintain or even improve its financial performance compared to the previous quarter, showcasing its resilience and strategic planning. This stability is key in instilling investor confidence and demonstrating the company’s capability to sustain growth momentum through product cycles and market shifts.

Conclusion: A Defining Moment

With NVIDIA’s Q1 2025 earnings on the horizon, the company is poised at a critical juncture. Will it meet the lofty expectations set by analysts and investors alike? For stakeholders and potential investors, the upcoming earnings will not just reflect past achievements but will also provide a lens into NVIDIA’s future trajectory.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of the company mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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