Nvidia Q1 earnings: What to expect

Nvidia (NVDA) is gearing up to report its first quarter earnings next Wednesday, and analysts are clearly optimistic. Revenue estimates for the tech giant are bullish, with projections calling for $24.51 billion.

Yahoo Finance's Seana Smith and Brad Smith delve into the details, discussing how artificial intelligence (AI) has been a driving force for the company and how it has continued to cement its position as a leader in the tech space. Furthermore, they explore the key factors analysts expect to propel Nvidia's earnings report.

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This post was written by Angel Smith

Video transcript

The earnings report the street is waiting for.

Of course, NVIDIA, which will report results next Wednesday, and positive forecasts are rolling in ahead of the report.

The consensus calls for revenue of $24.51 billion for NVIDIA's first quarter, rising to $26.52 billion in the second quarter, according to FactSet.

Shares are up over 80% year to date here.

And of course, this is going to be the true barometer for the continuance of the generative A. I conversation and how much is left in that thematic trade strategy as well.

Right now, at least when you take a look at the analysts anticipation here of this report, it looks like it's going to reaffirm this trend that we have seen over the last several quarters that NVIDIA is by far the leader within this space.

The fact that they do have this vote, at least right now, such a wide lead over so many of their competitors.

It looks like that is going to reaffirm some of this excitement that we have seen surrounding and video.

When you take a look at some of those expectations and where we are expected to see some of the most, uh, strength within this report.

U BS calling out their analysts there, saying that they expect a first quarter be specifically driven by stronger than expected lead times preceding those results, and as a result, there they see about 26% upside to the stock here.

1150 price target for share.

So again, more of that upside there and here we are not too shy from $1000 a share, and we could see that one year chart pretty much explains it all.

You've got another gain of about 218%.

And when you take a look at these lofty expectations and this pattern that we have seen from NVIDIA in recent quarters, really surpassing the streets, lofty expectations, beating them by a mile and then their guidance really driving the stock higher following the results when you take a look at the expectations at least this time around, analysts seem to be anticipating a similar type of move.

Yeah, and it really comes on delivery times here, too, as we're thinking about lead times coming in substantially enough room for hosting revenue potentially as high as $26 billion.

As we've been talking about a year with the buy ratings that are on NVIDIA right now, it's a larger question of what type of multiple the analyst and comfortably continue to tack on to in video.

And and at this juncture, I mean, it's like the de facto play, as it's been called by some analysts in the past for a generative a I exposure to the portfolio.

And so how much of that de facto measure continues to get tested by what is?

And it feels like this is what the third straight earnings report where we're saying this is supposed to be a Goldilocks type of report that they're coming into here for a video, and they've continued to surpass to the upside every single time.

It seems like they have, and it looks like in terms of some of those key things to watch within this report, the software run rate.

That's one of the things that analysts will be keeping a close eye on.

Also, just in terms of networking sales, what that figure is going to be and GB 200.

Those are some of the key things key factors key metrics that investors will be keeping a close eye on when we're trying to figure out what that run rate looks like and what their full year estimates are going to be.

Any changes, maybe to that to the upside.