Nvidia Corporation (NVDA:NSD) is preparing to announce its first-quarter financial results on May 24. As the anticipation builds up, Wall Street analysts express their optimistic outlook for Nvidia stock ahead of the Q1 print. With a strong foothold in the AI space and positive momentum in its Data Center and Gaming businesses, Nvidia continues to attract attention from investors and industry experts.
Nvidia Stock-Analyst Expectations:
According to industry experts, Nvidia is expected to meet or even surpass Q1 expectations. Analysts project a top line of $6.52 billion, falling within the management’s guidance range. Although this reflects a decline compared to the previous year, it indicates a sequential improvement in revenue from the previous quarter. The company’s growth in target markets, coupled with the strength in the Data Center and Gaming segments, are driving this positive outlook.
Bullish Analyst Perspectives:
Prominent analysts, including Hans Mosesmann of Rosenblatt Securities and William Stein of Truist Financial, share a bullish sentiment toward NVDA’s Q1 performance. Mosesmann emphasizes Nvidia’s competitive positioning in the AI space, while Stein anticipates increased demand for AI Graphics Processing Units (GPUs). Susquehanna analyst Christopher Rolland also maintains a Buy recommendation on Nvidia stock, expecting robust Q1 results due to Data Center demand, gaming recovery, and the ongoing AI gold rush.
Projected Bottom Line and Stock Prediction:
Due to improved sales and strong margins, analysts anticipate a sequential increase in Nvidia’s bottom line for Q1. Wall Street analysts project earnings of $0.92 per share, compared to $0.88 per share in the previous quarter. However, earnings are expected to decline year-over-year due to challenging comparisons.
Nvidia stock has experienced a significant surge, gaining about 114% year-to-date, driven by the popularity of OpenAI’s ChatGPT and the company’s dominant position in the AI space. With a Strong Buy consensus rating, analysts’ average price target of $296.29 implies a potential downside of 5.23%.
Conclusion:
As Nvidia prepares to unveil its Q1 financial results, analysts remain bullish on Nvidia stock. The company’s strong market performance in the AI space, coupled with positive momentum in its Data Center and Gaming businesses, sets a promising foundation for its performance. Investors eagerly await the announcement to gauge the extent of Nvidia’s growth and the impact it will have on the stock’s trajectory.
