Nvidia (NVDA) Gets Wall Street Boost on Strong Q1 Results and Upbeat Guidance
Nvidia (NVDA, Financials) saw its stock momentum recharge Thursday after a flurry of Wall Street upgrades followed strong quarterly results and upbeat guidance. The chipmaker posted revenue of $44.06 billion for the April quarter, a 69% jump from a year earlier and ahead of the $43.34 billion forecast. Earnings per share reached $0.81, comfortably beating the $0.73 consensus. The company said July quarter revenue could come in as high as $45.90 billion, suggesting 50% year-over-year growth at the midpoint. That outlook, paired with rising AI demand, prompted Summit Insights to upgrade the stock to Buy from Holdsurprising some observers, given the firm had missed Nvidias 24% run-up leading into earnings.
Warning! GuruFocus has detected 4 Warning Signs with NVDA.
Nvidias data center segment once again did the heavy lifting, accounting for 89% of revenue and surging 73% year over year. Gaming and AI PC sales rose 42% to $3.8 billion, while smaller businesses like automotive and visualization added $1.1 billion combined. The mix shows Nvidia is still leaning hard into enterprise AI, but its not ignoring other growth channels. Gross margin slipped to 71.3% after a $4.5 billion charge related to restricted H20 chip sales into China, but management expects margins to bounce back into the mid-70% range as the newer Blackwell architecture scales across more workloads.
The companys upbeat forecast comes despite pressure from U.S. export controls, which Nvidia says could cost it up to $8 billion in China data center revenue this quarter. Its still exploring compliant options to serve that market, which it believes could grow to nearly $50 billion. In the meantime, analysts are tuning in for more signals at several upcoming events, including presentations at the BofA Global Tech Conference on June 4 and the NASDAQ Investor Conference on June 10.
This article first appeared on GuruFocus.
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