Nvidia (NASDAQ:NVDA) Quarterly reports are not released at the same time as most large technology companies. All tech giants lock in earnings in roughly the same time period, but Nvidia’s fiscal quarter always ends a month later, giving it a late entry into the earnings game.
Although unintentional, in this AI-centric environment, it’s kind of appropriate to make everyone wait for the current darlings of the stock market to release their latest financials.
In fact, the company is poised to report its first-quarter results next Wednesday (May 22) once the market closes, but Deutsche Bank, an analyst ranked in the top 1% of street stock experts, said: ‘s Ross Seymour told investors that the results mark the one-year anniversary of Nvidia’s release of its “market-changing” May 2023 report.
With the latest print edition about to go on sale, analysts expect another strong reading soon.
“We expect the company to continue its trend of delivering healthy multi-billion dollar results on the back of still healthy demand for AI computing,” the 5-star analyst said . “While some companies may be reducing backorders ahead of Blackwell’s launch, we expect aggregate demand trends to remain healthy (i.e., impacting the company’s near-term outlook). ).
Seymour expects Nvidia’s April quarter sales to be $24.5 billion, “slightly above” the midpoint of the guide’s $24 billion and in line with Street expectations. At the end of the day, analysts are expecting PF EPS of $5.54, slightly above the consensus of $5.53.
For the second quarter of 2025 (July quarter), Seymour expects sales to increase 97% year over year to $26.5 billion, reflecting “increased supply and still strong demand.” That’s roughly in line with Street expectations of $26.7 billion. Given Nvidia’s track record of beating street expectations, Seymour also believes the risk in this estimate is “skewed to the upside again.” On the other end of the equation, Seymour is calling for his EPS of $6.00, which is about the same as the Street’s estimate of $5.99.
But what’s interesting here is that even though Seymour praises Nvidia and expects good results, he remains among a very small group who isn’t completely sold on the stock so far. That’s what I’m doing.
“Overall, we continue to be impressed with NVDA’s best-in-class technology roadmap and customer enthusiasm for AI is likely to continue (META, with still strong capex comments from MSFT) ), we believe we will have another strong quarter/guide,” he explained. . “However, investors are clearly becoming increasingly sensitive to AI-driven upside in the QTD of earnings season, and we believe the continued strength of the fundamentals is already well understood.”
As such, Seymour considers the stock to be “well-valued” and maintains his Hold (or Neutral) rating, while his $850 price target means the stock could fall 10% over the next year. It suggests that. (Click here to see Seymour’s track record)
That’s Deutsche Bank’s view, but what are the rest of us thinking? One other analyst joins Seymour with an additional hold rating, but is countered with a 40 buy, which is of course all consensus. The rating is “strong buy”. Going with the average target of $1,021.27, the stock would trade at ~8% premium in a year’s time. (look Nvidia stock price prediction)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
