Nvidia generated a record $26 billion in revenue during the fiscal 2025 first quarter (ended April 28), which was a 262% increase from the year-ago period. It blew Wall Street’s $24.6 billion projection right out of the water. The result included $22.6 billion in data center revenue alone, which represented 427% growth on the back of surging GPU demand.
Nvidia also delivered an incredible result at the bottom line, with $6.12 in earnings per share. It was a 461% increase and it came in comfortably above the Street’s $5.59 prediction.
Wall Street also underestimated Nvidia’s guidance. The company told investors it expects to show $28 billion in second-quarter revenue when it reports on Aug. 28, whereas the Street pegged that number at $26.6 billion.
Analysts have since played catch-up, and their consensus estimate has been revised higher to $28.5 billion, which signals Nvidia’s own forecast might even be too conservative. We’ll know for sure in two weeks.
If Nvidia exceeds Wall Street’s sales estimate, its stock could jump by at least 9% the following day, as it did after its Q1 results. The response could be even more positive given the recent dip in the stock. However, investors should be more focused on the longer term.
Source: https://www.fool.com/investing/2024/08/14/prediction-nvidia-stock-going-soar-after-august-28/
Picture: Pepperstone MT5
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