Nvidia Stock Expected to Surge as Q1 Earnings Near


Nvidia Stock Expected to Surge as Q1 Earnings Near
Nvidia Stock Expected to Surge as Q1 Earnings Near

Nvidia Stock Before Q1 Earnings: Analysts Predict Higher Gains

Analysts Raise the Bar for Nvidia Stock Ahead of Q1 Earnings

Nvidia (NVDA) has been one of the most successful stocks over the past 18 months, with its value surging 740% since late 2022. Analysts remain optimistic and expect further gains. Here are key insights into why Nvidia stock is still considered undervalued and poised for growth.

Key Reasons for Analyst Optimism

1. Strong AI Market Growth

  • AI is expected to contribute 25% to semiconductor sales by 2027, up from 5% in 2022.
  • Nvidia’s new AI processors, called Blackwell, are twice as fast and more energy-efficient than their predecessors.
Nvidia Stock Expected to Surge as Q1 Earnings Near
Nvidia Stock Expected to Surge as Q1 Earnings Near

2. Increased Cloud-Based Capital Expenditures

  • Rising cloud-based capital expenditures are a significant tailwind for AI companies like Nvidia.

3. Positive Ratings from Major Analysts

  • Jefferies initiated coverage with a “Buy” rating, citing robust AI market growth.
  • HSBC’s Frank Lee raised his price target from $1,050 to $1,350, indicating a 46% upside potential.

Q1 Earnings Forecast

  • Nvidia is set to release its fiscal Q1 2025 results on May 22.
  • Consensus forecasts predict a 251% increase in sales to $22.9 billion and a 425% rise in earnings to $5.15 per share.
  • HSBC’s Lee expects even higher Q1 revenue at $28 billion.

Long-Term Projections

  • Analysts forecast a 71.3% sales increase to $104.37 billion and a 78% rise in earnings to $23.10 per share for fiscal 2025.
  • By fiscal 2026, earnings per share could reach $45.16, with revenue at $196 billion.
Nvidia Stock Expected to Surge as Q1 Earnings Near
Nvidia Stock Expected to Surge as Q1 Earnings Near

Analyst Recommendations

  • Out of 40 analysts, 35 rate NVDA stock as a “strong buy,” two as a “moderate buy,” and three as “hold.”
  • The mean 12-month target price is $986.01, with Rosenblatt Securities projecting a high of $1,400.

Future Potential

  • By fiscal 2029, Nvidia could achieve adjusted earnings of $60 per share.
  • With a price-to-earnings ratio of 30x, NVDA might reach $1,800 by May 2028, or $2,100 at 35x earnings, indicating over 100% upside potential.

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