Nvidia Q1 Earnings Preview: Anticipated 400% EPS Growth, Upcoming GPU Releases, and Competition from Tech Giants

Santa Clara, California United States of America
Anticipated release of Blackwell series GPUs in Q4 with high-performance AI chips
Nvidia faces competition from tech giants like Alphabet Inc., Meta Platforms, Intel Corporation, and Advanced Micro Devices
Nvidia Q1 earnings expected to report over 400% EPS growth and 237% sales increase
Nvidia Q1 Earnings Preview: Anticipated 400% EPS Growth, Upcoming GPU Releases, and Competition from Tech Giants

Next week, the focus of the investment world will be on Nvidia as it prepares to release its Q1 earnings. With high investor expectations and a strong track record of surpassing earnings estimates, Nvidia's report could significantly impact the broader market indexes which are currently printing fresh highs. Let's take a closer look at what investors can expect from Nvidia's Q1 earnings.

According to multiple sources, including Zacks Investment Research and CNBC, Q1 earnings for Nvidia are anticipated next week with EPS projected to soar over 400% to $5.52 versus $1.09 a share in the comparative quarter. Furthermore, sales are expected to increase by 237% to $24.27 billion versus $7.19 billion a year ago.

Nvidia has consistently surpassed earnings and sales estimates for five straight quarters, posting an average earnings surprise of 20.18% in its last four quarterly reports. This trend is expected to continue with Q1, as the Most Accurate Estimate indicates Nvidia could once again beat expectations with a projected EPS of $5.68 and 3% above the current Zacks Consensus.

Wallstreet will also be looking for updates on Nvidia's upcoming Blackwell series of GPUs, which are expected to arrive during Q4 in October or November and projected to have a price tag of $30,000-$40,000 for a single GPU. These high-performance AI chips are anticipated to cement projections of high double-digit top and bottom-line growth for Nvidia in its current fiscal 21 and FY26.

Despite the strong earnings expectations, Nvidia's stock currently trades at a more reasonable valuation with a forward earnings multiple of 39.4X, which is well below its five-year high of 122.1X and a 29% discount to the median of 55.6X.

However, competition from tech giants like Alphabet Inc., Meta Platforms, Intel Corporation, and Advanced Micro Devices is building up as companies look to diversify their chip providers. Nvidia now faces real competition in the market and investors will be closely watching for any updates on this front during the earnings report.

In conclusion, with high investor expectations and a strong track record of surpassing earnings estimates, Nvidia's Q1 earnings report next week could significantly impact the broader market indexes. Investors will be looking for updates on Nvidia's upcoming Blackwell series of GPUs and any potential competition from other tech giants.


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Confidence

96%

Doubts
  • Are the earnings estimates for Nvidia's Q1 accurate?
  • Is there any potential for Nvidia to miss earnings expectations?

Sources

92%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia’s earnings will be in focus next week as stocks try to sustain record levels

CNBC News Sarah Min Friday, 17 May 2024 19:07
  • Unique Points
    • Next week, Nvidia’s earnings will be in focus
    • Stocks are trying to sustain record levels
  • Accuracy
    • ]Next week, Nvidia's earnings will be in focus[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

94%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Time to Buy Nvidia's Stock as Q1 Earnings Approach Next Week?

Yahoo Finance Shaun Pruitt Saturday, 18 May 2024 08:10
  • Unique Points
    • Nvidia’s Q1 earnings are anticipated next week with high investor expectations.
    • Q1 EPS is projected to soar over 400% to $5.52 versus $1.09 a share in the comparative quarter.
    • Nvidia has surpassed earnings expectations for five straight quarters, posting an average earnings surprise of 20.18% in its last four quarterly reports.
    • Q1 sales are expected to increase 237% to $24.27 billion versus $7.19 billion a year ago.
    • Nvidia has surpassed sales estimates for 20 consecutive quarters.
    • Wallstreet will be looking for updates on Nvidia’s Blackwell series of GPUs, expected to arrive during Q4 in October or November and projected to have a price tag of $30,000-$40,000 for a single GPU.
    • Nvidia currently has a Zacks Rank #1 (Strong Buy) ahead of its Q1 report next week due to more reasonable P/E valuation and rising earnings estimate revisions for FY25 and FY26.
  • Accuracy
    • ]Nvidia's Q1 earnings are anticipated next week with high investor expectations.[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    No explicit formal or informal fallacies found in the author's statements. However, there are several instances of appeals to authority and dichotomous depictions.
    • . . . another quarter of monstrous growth from Nvidia could certainly propel markets higher . . .
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

90%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Nvidia Q1 Preview: Competition Is Now Real (Rating Downgrade)

Seeking Alpha Investment Community Noah's Arc Friday, 17 May 2024 17:33
  • Unique Points
    • Nvidia is the leading company in the AI GPU sector with a market cap of around $2.3 trillion, making it the fourth most valuable company globally.
    • Competition from tech giants like Alphabet Inc., Meta Platforms, Intel Corporation, and Advanced Micro Devices is building up and companies want to diversify their chip providers.
    • Nvidia has real competition in the market.
  • Accuracy
    • ]The stock price of Nvidia may be inflated[
    • The stock price of Nvidia could potentially lead to a significant correction[
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    The author makes several assertions in the article that contain informal fallacies. The author states that 'companies do not want an external chip provider (Nvidia) to control their destiny in the race for ever-more-powerful AI models.' This is an example of an appeal to fear fallacy, as the author is trying to elicit fear from readers about the potential consequences of relying on Nvidia for chips. The author also states that 'The tech giant's stock price may be inflated due to the current AI hype, potentially leading to what I believe to be a potential significant correction.' This is an example of a crystal ball gazing fallacy, as the author is making a prediction about future events without any concrete evidence. The author also uses inflammatory rhetoric by stating that 'With this, the tech giant’s stock price may be inflated due to the current AI hype, potentially leading to what I believe to be a potential significant correction.' This type of language is intended to evoke strong emotions in readers and can be misleading. Despite these fallacies, the article provides valid reasoning and evidence for why the author believes Nvidia faces competition and why he is downgrading his rating on the stock.
    • ]The tech giant’s stock price may be inflated due to the current AI hype, potentially leading to what I believe to be a potential significant correction.[
    • companies do not want an external chip provider (Nvidia) to control their destiny in the race for ever-more-powerful AI models.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication