Nvidia’s income has become some of the most viewed songs on Wall Street. The company is about 6.5% of the Nasdaq 100 and 5.5% of the S&P 500, so the Nasdaq index can rise for a good quarter. A marginal or poor can make it tumble.
On Wednesday 28 May, after the market, the innovative chip giant will report tax results of the first quarter before 2025 and expectations are again high. Analysts expect that the turnover of Q1 years on year will grow by 66% to $ 43.28 billion, according to LSEG. That is not the increase of 262% it had in the first quarter of last year, but it is still an impressive progress. The adjusted income is expected to receive $ 0.73 per share.
Nvidia -shares (Nasdaq: NVDA) In the course of the profit, more than 3% wins from 3 p.m., with shares of $ 135. Year to date, NVDA shares have fallen by 2%.
Despite the high expectations, however, Nvidia is confronted with some substantial obstacles and investors will look at what kind of impact they will have. Last month, the Trump administration set export limits on the H20 chip of Nvidia. This led the company to announce a Q2 debit of $ 5.5 billion, related to inventory and purchasing obligations for the chip.
The impact in the longer term of those restrictions can be worse. David O’Connor, from BNP Paribas, wrote in a note on Tuesday: “This inventory statement implies a H20 income of $ 15 billion on a rolling basis of 12 months.”
The restrictions on sales to China can cause some destruction for Nvidia in the short term. Bank of America analysts warned that the guidance for the second quarter could be ‘messy’, say ‘[Nvidia] could guide [second fiscal quarter revenue] Up to as low as $ 41 billion, lowered under the recently $ 46 billion consensus. ”The consensus of the profit per share (an average of analyst expectations) can also be considerably reduced in the second tax quarter.
Although the short term can be rocky, analysts are more interested in the back of the year – and will listen to what the company has to say about the third and fourth quarter. NVIDIA is reportedly working on a new chipset for China that would meet the most recent regulations. And large contracts outside of China may help to make a short -term shortage.
A Saudi savior
Analysts remained positive prior to income. Piper Sandler repeated his “overweight” rating of the company on Tuesday (which means a conviction that NVDA shares will perform better than the market in the coming 6 to 12 months) and say in a note: “We advise investors to endure the uncertainty and for a long time to stay the shares, since this is probably the last wave of negative news for NVDA.”
And despite his warning, Bank of America maintained his ‘buy’ rating and a target for Nvidia. It raised that goal from $ 150 to $ 160 last week after the announcement of a deal with Humain, a subsidiary of the Public Investment Fund of Arabia that is building a huge AI data center. (This deal seems to be less likely to be confronted with limitations, because the Trump government has given its blessing to the scheme, with Ai Tsar David Sacks to call A “Game-Changer in the global AI race.”)
Nvidia will receive an estimated $ 7 billion in direct contracts from that deal. Phase 1 comprises 18,000 Blackwell GPUs with a value of around $ 700 million. Bank of America expects that “a few hundred thousand of the most advanced GPUs from Nvidia” will be sent over the next five years.
Together, 87% of the analysts who cover NVDA shares have a buy -rating from the company. The stock price has risen by more than 600% over the past three years and the company is the second largest public company in the world of Market Cap (behind Microsoft) with $ 3.3 trillion.
However, there are some bears. Michael Burry, who was familiar with predicting the subprime mortgage crisis in 2008, has bought PUT options at the company, in essence against it. And other critics wonder how long the robust growth can continue, because competitors such as Huawei, customers and cloud companies, such as Microsoft and Google, attract, work to make their own AI chips.
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