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Nvidia Q1 earnings preview: Wall Street expects continued AI momentum

May 21, 2024 - markets.businessinsider.com
Nvidia is set to report its first-quarter earnings after the market close on Wednesday, with Wall Street expecting a continued increase in the company's AI chip sales ahead of its next-gen Blackwell chip release. Analysts estimate a revenue of $24.69 billion, earnings per share of $5.34, and EBITDA of $16.74 billion. The focus will be on the potential slowdown in sales of its current-generation H100 chips and the supply-demand dynamic for its AI-enabling chips.

Wells Fargo has raised its Nvidia price target to $1,150, citing improving H100 GPU lead times and the upcoming H200 ramp as potential drivers for data center revenue. Bank of America expects a beat but warns of increased stock volatility due to potential quarterly revenue deceleration ahead of the Blackwell chip launch and other factors. Deutsche Bank expects Nvidia to deliver "healthy multi-billion dollar beats/raises" due to strong demand for AI compute but believes the stock is "fully valued." Bloomberg Intelligence expects a "solid beat and raise," highlighting rising cloud capital-spending outlook and accelerating AI investments as key demand signals.

Key takeaways:

  • Nvidia is set to report its first-quarter earnings results after the market close on Wednesday, with Wall Street expecting a continued increase in Nvidia's AI chip sales ahead of its next-gen Blackwell chip release.
  • Estimates for Nvidia's first-quarter earnings report include a revenue of $24.69 billion, earnings per share of $5.34, and EBITDA of $16.74 billion.
  • Analysts will be looking for updated guidance and views on the current supply-demand dynamic for Nvidia's AI-enabling chips, as well as gauging whether a slowdown in sales of its current-generation H100 chips is on the horizon.
  • Various banks and financial institutions have given their predictions and ratings for Nvidia, with Wells Fargo rating it at 'Overweight' with a $1,150 price target, Bank of America rating it at 'Buy' with a $1,100 price target, and Deutsche Bank rating it at 'Hold' with a $850 price target.
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