Nvidia’s stock price dipped slightly ahead of its first-quarter earnings report, closing at $947 after reaching a record high of $953.86 the day before. This fluctuation is not unprecedented for the chipmaker giant, as it experienced a similar situation before its last earnings report in February. Despite seeing its worst day on the stock market since October 2023, Nvidia rebounded after reporting strong revenue of $22 billion, up nearly 270% from the previous year. The company’s stock price has largely recovered and is currently up 204% from the past year.
After unveiling its latest chip, Blackwell, in March, Wall Street has high expectations for Nvidia’s upcoming earnings report. However, some analysts are concerned about a potential slowdown in orders for existing Nvidia chips before the launch of Blackwell.
Nvidia’s previous chip, Hopper, has helped the company become the first chipmaker to reach a $2 trillion market cap in February and the third most valuable company in the world in March. Analysts are anticipating Nvidia to report first-quarter revenue of $24.5 billion, with some estimates reaching as high as $26 billion. Analysts like KeyBanc’s John Vinh expect Nvidia to exceed expectations and provide optimistic guidance for the second quarter.
Bank of America Global Research analysts also expect positive results from Nvidia’s earnings report, although they caution that the company’s stock may experience volatility due to factors such as a potential slowdown before Blackwell and reliance on the Chinese market.
Analysts like Piper Sandler’s Harsh Kumar believe that Nvidia is well-positioned for continued growth, particularly in its data center products. Despite concerns about a possible drop in demand, analysts are generally optimistic about Nvidia’s future prospects.
Citi analysts anticipate some slowdown in Nvidia’s growth compared to previous quarters, as well as a normalization of gross margins before the launch of the GB200 chip in the first half of 2025. They also note a potential decrease in demand for Nvidia chips as the company prepares to introduce the Blackwell processors. Morgan Stanley analysts have expressed anxiety about a pause in demand leading up to the launch of Blackwell.
Overall, while some analysts have expressed cautious optimism and concerns about a potential slowdown in demand, many remain confident in Nvidia’s ability to deliver strong earnings and growth in the upcoming quarters. Investors will be closely watching Nvidia’s first-quarter earnings report to assess the company’s performance and future prospects.
Article Source
https://qz.com/nvidia-share-price-first-quarter-earnings-blackwell-1851493512