Nvidia Corp. is set to release its earnings report for FY2025 Q1, with investor focus primarily on the company’s performance in the AI sector. Gene Munster, Managing Partner of Deepwater Asset Management, shared his insights on what to expect from Nvidia’s upcoming report, which is scheduled to be released after the market closes on Wednesday.
Munster highlighted a potential risk for Nvidia in the form of the impending launch of Blackwell, the company’s new flagship GPU platform. He expressed concern that customers may delay or cancel orders for the current flagship H200 chip in anticipation of the new chips set to be released in the fall, a phenomenon called the “Osborne Effect.” Munster hopes that Nvidia will take steps to mitigate this effect and manage the product transition smoothly.
Despite the potential for initial disappointment from investors, Munster believes that any setbacks will be temporary and anticipates that orders will recover once the Blackwell series, including B100, B200, and GB200, are launched.
Looking ahead, Munster extrapolates comments on the July quarter to predict future earnings and revenue growth for calendar year 2025. He expects Nvidia to continue growing at a rapid pace, with consensus estimates suggesting significant earnings and revenue growth in the coming years.
Nvidia’s stock currently trades at a relatively conservative price-to-earnings ratio, but Munster is optimistic about the company’s future growth prospects in the AI sector. Analysts forecast strong performance from Nvidia in the first quarter, with expected non-GAAP earnings per share of $5.12 and revenue growth of nearly 247%.
As of Monday, Nvidia shares were trading at $947.80, up 2.49% for the day. The stock has seen significant gains this year, rising over 91%.
In conclusion, Nvidia’s upcoming earnings report is highly anticipated by investors, with expectations of strong performance in the AI sector driving optimism for future growth. Despite potential short-term challenges, analysts and investors remain bullish on Nvidia’s long-term prospects in the technology industry.
Overall, the stage is set for Nvidia to continue its growth trajectory and capitalize on the increasing demand for AI technologies in various industries.
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https://www.benzinga.com/analyst-ratings/analyst-color/24/05/38933844/will-nvidia-q1-print-disappoint-munster-sees-near-term-hit-from-osborne-effect-but-