- Nvidia's financial outlook is positive as it anticipates first-quarter earnings, driven by heightened demand for AI.
- The Data Center segment is a key revenue driver for Nvidia, projected to earn $21 billion.
- The Gaming division of Nvidia is also on an upward trajectory, with revenues expected to rise to $3.5 billion.
- Nvidia's stock has shown robust performance, evidenced by a 92% increase year-to-date.
NVIDIA Corp's (NASDAQ:NVDA) financial outlook looks promising as Q1 earnings approach, primarily boosted by a surge in AI demand. The company expects to report $24.69 billion in revenue, a significant rise from last year, reflecting strong growth.
The Data Center segment is expected to be a major contributor, with projected revenues of $21 billion, showing a substantial year-over-year increase.
Additionally, the Gaming division is also growing, with expected revenues rising to $3.5 billion from $2.24 billion last year.
This growth highlights the expanding use of Nvidia's chips in various sectors, including energy and power, demonstrating the widespread adoption of AI technology across industries.
Nvidia's stock performance has reflected its growth trajectory. The year started strong, with stock increases of 23% in January and 28% in February, leading to a total year-to-date growth of 92%.
Nvidia's stock price is now nearing the significant $1000 level, which could present considerable psychological resistance.
Their earnings are estimated at $5.18 per share. As earnings effects are unpredictable, the results could impact the market in either direction.
However, investors are hopeful that strong earnings will push the stock past $1000. Nvidia is currently consolidating between support at around $750 and resistance just below $1000. This range has been in place since March 8.
The company has historically bounced back well from consolidation periods, so breaking above the resistance could indicate a continuation of the bullish trend, much to the anticipation of investors seeking significant returns.
After the closing bell on Tuesday, May 21, the stock closed at $953.86, trading up by 0.64%.
This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.