Anticipation Builds: Nvidia's Q1 2025 Earnings Preview
AI powerhouse, Nvidia is set to unveil its first-quarter earnings for 2025 on Wednesday, May 22nd.
With anticipation running high, let's delve into what to expect from Nvidia's upcoming earnings release.
Can Nvidia Beat the Street?
Analysts are bracing for another set of impressive numbers from Nvidia, projecting first-quarter revenues to soar to approximately $24.65 billion versus the previous quarter's revenue of $22.1 billion. This surge would represent a threefold increase from the $7.19 billion reported in Q1 2024.
Wall Street also expects profitability to hit new heights. Nvidia's diluted earnings per share (EPS) for Q1 2025 is expected to reach $5.17, marking a substantial increase from $0.82 in the year-ago period and a slight uptick from $4.93 in the previous quarter.
Key Growth Drivers
Several factors are driving Nvidia's stellar performance in Q1 2025:
Data Centre Dominance: Nvidia's data centre segment continues to be a powerhouse, propelled by the escalating adoption of AI. Analysts anticipate data centre revenues to hit a record $21.17 billion for the quarter, driven by soaring demand for AI-capable GPUs and accelerated investments from cloud service providers.
Innovative Offerings: Nvidia's recent unveiling of the Blackwell platform has generated significant buzz within the industry. Boasting the world's most powerful AI GPUs and groundbreaking technologies like Tensor Cores for large language model inference, Blackwell holds immense potential to reshape the AI landscape and bolster Nvidia's revenue streams.
Expanding Market Reach: Beyond AI, Nvidia's gaming and professional visualisation segments are also experiencing growth. The relentless demand for high-performance graphics cards and visualisation tools underscores Nvidia's market leadership and diversified revenue streams.
Key Levels: Retesting Resistance Ahead of Earnings
Nvidia’s share price is currently retesting a key resistance zone formed by the highest high and highest close within the two swing highs in March. Last Thursday's price action touched this resistance zone and printed a small bearish reversal candle, followed by a mildly bearish candle on Friday.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Post-Earnings Price Action Scenarios:
Break and Close Above Resistance: A decisive break and close above the resistance zone could trigger a new bullish trend leg higher, potentially driven by a positive earnings surprise and optimistic forward guidance.
Rejection at Resistance: Holding below the resistance zone post-earnings could lead to a retest of the April swing lows, signalling potential consolidation or a downward correction.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
With anticipation running high, let's delve into what to expect from Nvidia's upcoming earnings release.
Can Nvidia Beat the Street?
Analysts are bracing for another set of impressive numbers from Nvidia, projecting first-quarter revenues to soar to approximately $24.65 billion versus the previous quarter's revenue of $22.1 billion. This surge would represent a threefold increase from the $7.19 billion reported in Q1 2024.
Wall Street also expects profitability to hit new heights. Nvidia's diluted earnings per share (EPS) for Q1 2025 is expected to reach $5.17, marking a substantial increase from $0.82 in the year-ago period and a slight uptick from $4.93 in the previous quarter.
Key Growth Drivers
Several factors are driving Nvidia's stellar performance in Q1 2025:
Data Centre Dominance: Nvidia's data centre segment continues to be a powerhouse, propelled by the escalating adoption of AI. Analysts anticipate data centre revenues to hit a record $21.17 billion for the quarter, driven by soaring demand for AI-capable GPUs and accelerated investments from cloud service providers.
Innovative Offerings: Nvidia's recent unveiling of the Blackwell platform has generated significant buzz within the industry. Boasting the world's most powerful AI GPUs and groundbreaking technologies like Tensor Cores for large language model inference, Blackwell holds immense potential to reshape the AI landscape and bolster Nvidia's revenue streams.
Expanding Market Reach: Beyond AI, Nvidia's gaming and professional visualisation segments are also experiencing growth. The relentless demand for high-performance graphics cards and visualisation tools underscores Nvidia's market leadership and diversified revenue streams.
Key Levels: Retesting Resistance Ahead of Earnings
Nvidia’s share price is currently retesting a key resistance zone formed by the highest high and highest close within the two swing highs in March. Last Thursday's price action touched this resistance zone and printed a small bearish reversal candle, followed by a mildly bearish candle on Friday.
NVDA Daily Candle Chart
Past performance is not a reliable indicator of future results
Post-Earnings Price Action Scenarios:
Break and Close Above Resistance: A decisive break and close above the resistance zone could trigger a new bullish trend leg higher, potentially driven by a positive earnings surprise and optimistic forward guidance.
Rejection at Resistance: Holding below the resistance zone post-earnings could lead to a retest of the April swing lows, signalling potential consolidation or a downward correction.
Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80.84% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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