NVIDIA is set to report its first-quarter earnings with high expectations due to the soaring demand for AI chips. Analysts predict a significant increase in earnings to $5.60 per share from last year’s 88 cents per share, as well as a revenue increase of 238% to $24.3 billion. The company’s market value has skyrocketed from nearly $1 trillion to $2.4 trillion in just 12 months.
The stock market has priced NVIDIA stock perfectly, but there are concerns that the company may not meet expectations in the future. The current quarter is expected to deliver another exceptional result, but future growth may not be as meteoric. NVIDIA’s earnings and profits saw significant growth over the past year, but this trend is likely to slow down in the second half of the year.
The focus of the upcoming earnings report will be on NVIDIA’s data center segment, particularly its AI business. The company’s H100 chip was a breakthrough in the AI semiconductor market, but it has now been surpassed by the H200 and the upcoming Grace Blackwell superchip. Some customers, such as Amazon, are holding off on purchasing the H200 chips in anticipation of the Blackwell chip’s release.
Despite NVIDIA’s strong performance, the overall chip market has experienced a slowdown, causing concern among investors. Companies like Super Micro Computer and Taiwan Semiconductor have hinted at a potential industry slowdown, raising caution about the future of the semiconductor market. It is advised to wait and see how NVIDIA’s earnings report unfolds before making any investment decisions.
In conclusion, while NVIDIA’s first-quarter earnings are expected to be impressive, there are uncertainties about its future growth potential. Investors are advised to exercise caution and observe market trends before making any investment decisions.
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https://investorplace.com/2024/05/nvidia-stock-earnings-preview-sorry-q1-will-be-as-good-as-it-gets-for-nvda/
