Analysts from investment firm Morgan Stanley recently met with executives from Nvidia (NVDA). Led by Joseph Moore, the analysts left the meeting with a favorable outlook. In a note, Moore wrote that the revenue growth witnessed at Nvidia so far has been due to the migration of CPU workloads to GPU within existing application workloads. Although the hype around Nvidia has been around artificial intelligence (AI), most of the transformative AI use cases are yet to come. More AI applications are just beginni ...

Core Insights - Nvidia is expected to report Q2 2026 earnings at the end of August, with analysts forecasting earnings of $1 per share, up from $0.68 year-over-year, and revenues projected to exceed $45.60 billion, reflecting over 50% year-over-year growth driven by strong demand for GPU chips in generative AI applications [2] - The company has a current market capitalization of $4.4 trillion, with total revenue of $149 billion over the past twelve months, operating profits of $86 billion, and a net income of $77 billion [3] - Historical trends indicate that Nvidia stock has risen 60% of the time following earnings releases, with a median one-day increase of 4.5% and a maximum observed increase of 24% [2][4] Earnings Performance - Over the last five years, Nvidia has recorded 20 earnings data points, with 12 positive and 8 negative one-day returns, resulting in a 60% occurrence of positive returns [4] - The median of positive returns is 4.6%, while the median of negative returns is -6.3% [4] - The percentage of positive returns drops to 58% when considering the last three years [4] Trading Strategies - Event-driven traders may benefit from historical trends by positioning themselves prior to earnings or responding to post-release movements [3] - A strategy involving correlation between short-term and medium-term returns post-earnings can be employed, particularly if 1D and 5D returns show strong correlation [5] - The performance of peer companies can also influence Nvidia's post-earnings stock reactions, as pricing may begin before earnings announcements [6]

CHONGQING, CHINA - MAY 25: In this photo illustration, the logo of NVIDIA Corporation is displayed ... More on a smartphone screen, with the latest stock market chart of the company in the background, reflecting investor sentiment and recent trading activity, on May 25, 2025, in Chongqing, China. NVIDIA is a leading American technology company renowned for its graphics processing units (GPUs), artificial intelligence (AI) computing platforms, and data center solutions. (Photo Illustration by Cheng Xin/Getty ...

Core Viewpoint - Nvidia's recent quarterly results indicate strong demand and significant growth, despite a negative post-earnings reaction in its stock price [1][14]. Financial Performance - Nvidia reported quarterly sales of $39.3 billion, marking a 78% increase year-over-year and setting a new quarterly record [3]. - Adjusted EPS was $0.89, reflecting a 71% growth year-over-year and exceeding consensus estimates by nearly 6% [3]. - Data Center revenue reached a record $35.6 billion, up over 90% year-over-year and 16% sequentially, beating consensus estimates by $2.0 billion [4]. Product Developments - The Blackwell AI supercomputers have ramped up production successfully, generating billions in sales during their first quarter [6][8]. - Demand for Blackwell is expected to remain strong as companies increasingly invest in AI technologies [11]. Market Position - Despite a 2% decline in stock price over the past three months, Nvidia's shares are considered relatively inexpensive, with a forward earnings multiple of 30.6X, significantly lower than historical highs [11][12]. - The PEG ratio stands at 1.5X, again below historical averages, indicating potential value [11]. Future Outlook - Nvidia anticipates sales of $43.0 billion (plus or minus 2%) for the next reporting period, continuing its growth trajectory [13]. - The overall demand picture remains positive, supported by CEO Jensen Huang's comments on the Blackwell architecture and the increasing need for computational power [14].

Nvidia (NVDA) reported fiscal fourth-quarter earnings that exceeded analysts' expectations, as demand for artificial intelligence powered sales to a fresh high. The chipmaker posted record quarterly revenue of $39.33 billion, up 78% year-over-year and above the analyst consensus from Visible Alpha. Adjusted net income of $22.07 billion was up 72% from a year earlier and topped expectations. Sales from Nvidia's data center segment, representing the bulk of the chipmaker's revenue, nearly doubled to a record ...

Core Insights - Nvidia reported fourth-quarter revenue of $39.3 billion, a 12% increase quarter-over-quarter and a 78% increase year-over-year, surpassing the consensus estimate of $38.05 billion, marking a company record [1][2] - The company achieved fourth-quarter earnings of 89 cents per share, an 82% year-over-year increase, exceeding the consensus estimate of 84 cents per share [2] - Full fiscal year revenue reached $130.5 billion, a record high, reflecting a 114% year-over-year increase [2] Segment Performance - Data Center revenue was $35.6 billion, showing a 93% year-over-year increase and a 16% quarter-over-quarter increase [4] - Gaming & AI PC revenue was $2.5 billion, down 11% year-over-year and down 22% quarter-over-quarter [4] - Professional Visualization revenue was $511 million, up 10% year-over-year and up 5% quarter-over-quarter [4] - Automotive revenue reached $570 million, a 103% year-over-year increase and a 27% quarter-over-quarter increase [4] Future Guidance - The company projects first-quarter revenue of $43.0 billion, with a variance of +/- 2%, exceeding the street consensus estimate of $41.75 billion [4] - Non-GAAP gross margins are expected to be 71% in the first quarter [5] - The CEO highlighted the successful ramp-up of Blackwell AI supercomputers, indicating significant sales growth in the AI sector [5]

Record quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year agoRecord quarterly Data Center revenue of $35.6 billion, up 16% from Q3 and up 93% from a year agoRecord full-year revenue of $130.5 billion, up 114% SANTA CLARA, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ:NVDA) today reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter and up 78% from a year ago. For the quarter, GAAP earnings per diluted share was $0 ...

NVIDIA corporate headquarters NVIDIA corporate headquarters in Silicon Valley Record quarterly revenue of $39.3 billion, up 12% from Q3 and up 78% from a year agoRecord quarterly Data Center revenue of $35.6 billion, up 16% from Q3 and up 93% from a year agoRecord full-year revenue of $130.5 billion, up 114% SANTA CLARA, Calif., Feb. 26, 2025 (GLOBE NEWSWIRE) -- NVIDIA (NASDAQ: NVDA) today reported revenue for the fourth quarter ended January 26, 2025, of $39.3 billion, up 12% from the previous quarter ...