NVDA Q1 Earnings: What Will Happen Next?
$NVIDIA(NVDA.US$ The previous financial results announcement was for the fourth quarter of the 2024 fiscal year, and it was the first announcement in a long time showing that there is still room to buy NVIDIA stock. Sales reached 22.1 billion dollars, up 265% from the previous year. Net profit surged 765% to 12.28 billion dollars.
May 22The first quarter report of 2025, which will be announced in, is approaching, and NVIDIA stock is fluctuating again, but the level is getting higher. It has repeatedly surpassed and declined over $900 per share.
shiny objects
Many wise people don't think it's possible. Even if Nvidia provides a positive surprise, they believe there are brighter objects in this new AI world. Some people are finding greater profits outside of what is called the “AI bubble.”
It would be logical to believe this. As a result, analysts raised target stock prices. The stock price is $900, so last quarter's surprise won't be enough.
There is also a hypothesis that it should not stay this way. Nvidia is at the forefront of the AI boom, that is, on the infrastructure side. At some point, that move will move to applications, and Cloud Czars will monetize the huge investment they are making in Nvidia chips. At some point, attention will shift away from Nvidia and elsewhere in the AI stack.
$Advanced Micro Devices(AMD.US$ Competitors such as these have begun to reverse their performance. $Intel(INTC.US$ Even if that new factory somehow becomes a secondary source of Nvidia chips, it continues to be abandoned.
Blackwell: the next magic trick
But Blackwell is there.
The new Blackwell platform, which was introduced in March, is something that has never been seen before. The chip has become larger, and more functions have been integrated onto the chip to prevent a decrease in processing speed.
There is a single chip equipped with 30 terabytes of memory and capable of executing 1.4 instructions per second (1.4 exaflops). Nvidia will build a new board for Blackwell and stack it on a new custom-made rack.
Cloud Tsars and the others are drooling like puppies in a shelter after seeing their new family. It is a major supplier to Nvidia $Taiwan Semiconductor(TSM.US$ Is in a recent financial results reportSales increased 60%I did it.
AI professionals will grow exponentially as companies adopt generative AI and spread it around the world.
Implementation risks
The biggest risk for Nvidia does not come from the market, but from society. Many white-collar jobs appear to be threatened by generative AI. It is said that almost every role in every business will fundamentally change over the next few years. People who can't keep up will be left behind.
According to Scott Galloway, AI requires energy, which could also destroy society.
If you think the world is in turmoil right now, in other words, you haven't seen anything yet. If you do a Google search for “AI disruption,” they will answer that every industry and every nation is preparing for an earthquake like the one that struck Pompeii.
This could be the biggest risk for Nvidia's stock price and Cloud Czar customers. The world isn't ready for what Blackwell can do.
conclusions
I'm hoping to hear good news from Nvidia's financial results announcement.
Analysts are currentlyRevenue of 24.5 billion dollarsIt is expected, compared to the same period last year234% increase, compared to the previous quarter16% increaseIt has become. Net profit per share$5.05I anticipate it. If a company fails to achieve that goal, stock prices will fall.
Experts say you should refrain from buying and wait until the multiples become cheaper. Or they might focus on companies that are small but can truly deliver dramatic profits.
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