Nvidia Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

NVIDIA is set to release Q1 earnings after the bell on Wednesday, May 28th, with analysts anticipating EPS of $0.88, up from $0.61 year-over-year, and a record revenue of $43.54 billion, surpassing the previous quarter's $39.33 billion. Several analysts have recently reiterated positive ratings on NVDA, with price targets ranging from $155 to $175, although some have slightly reduced their targets in April and May.

Analysis

NVIDIA Corporation is set to release its first-quarter earnings on May 28, with analysts forecasting substantial year-over-year growth, including an expected earnings per share of $0.88, up from $0.61 in the prior year, and projected record quarterly revenue of $43.54 billion, a significant increase from $26.04 billion year-over-year and $39.33 billion in the fourth quarter. This anticipated strong performance contributed to a 3.2% rise in NVIDIA's shares, closing at $135.50 on Tuesday. Analyst sentiment, as reflected in recent ratings, remains generally positive. Wedbush reiterated an Outperform rating with a $175 price target, and B of A Securities maintained a Buy, increasing its price target from $150 to $160. However, some analysts have made minor downward adjustments to their price targets: UBS trimmed its target from $180 to $175, Morgan Stanley from $162 to $160, and Barclays from $175 to $155, all while maintaining positive ratings like Buy or Overweight. These adjustments, despite the overall bullish stance, suggest a slight tempering of near-term price expectations by some analysts, though current targets still indicate notable upside potential from the last closing price.

Key Decisions for Investors

• Investors should closely scrutinize NVIDIA's upcoming Q1 earnings report, especially the revenue and EPS figures, given the high market expectations and the stock's sensitivity to any variance from the forecasted record performance.
• While the consensus among analysts remains bullish with price targets suggesting further upside, the recent minor downward revisions in some price targets warrant careful consideration, potentially signaling that some of the near-term optimism is already priced in or that growth expectations are being slightly recalibrated.
• Given the significant revenue and earnings growth anticipated, and the stock's recent appreciation, investors should assess whether the current valuation fully reflects these strong projections and consider the implications if actual results meet, exceed, or fall short of these elevated consensus estimates.