This week we hit a key moment for momentum in a market that keeps setting new records on Wednesday, May 22, when Nvidia (NVDA) announces revenue and earnings for the company’s first fiscal quarter of 2025 and the quarter that ended in calendar April 2024.
The consensus among Wall Street analysts is looking for the company to earn $5.17 a share. That would be a huge leap from 88 cents a share in the April 2023 quarter.
The projections for revenue are every bit as optimistic. The consensus analyst forecast for Nvidia’s revenue in the April 2024 quarter is $24.22 billion. That would be a 237% year-over-year increase. This revenue projection is in line with Nvidia’s own guidance of around 300% revenue growth to $24 billion in the April 2024 quarter.
Analysts also forecast that Nvidia’s gross margin will climb to 77.03%, up 13 percentage points from a year earlier.
Now beating forecasts like this isn’t an easy task. And there is a non-zero chance that Nvidia won’t beat these estimates.
The growth rates are so high, however, that I think the stock is likely to climb on anything like these numbers.
And anything like these projections in the actual numbers is likely to take the stock market as a whole with it to new records. These growth rates, or anything like them, would be seen, not surprisingly, as confirmation that the AI boom still has more room to run.
All this, however assumes that Nvidia doesn’t say anything negative in its guidance for coming quarters. And given the incredibly bullish product announcements going out of the company recently, I think a negative surprise on guidance is also unlikely.
And finally when we see how the market reacts to anything like the expected good news we’ll see how many investors still don’t own Nvidia or at least not enough Nvidia.
