A Peek at NVIDIA's Future Earnings

NVIDIA NVDA will release its quarterly earnings report on Wednesday, 2025-05-28. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate NVIDIA to report an earnings per share (EPS) of $0.93.

The market awaits NVIDIA's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Earnings Track Record

During the last quarter, the company reported an EPS beat by $0.05, leading to a 8.48% drop in the share price on the subsequent day.

Here's a look at NVIDIA's past performance and the resulting price change:

Market Performance of NVIDIA's Stock

Shares of NVIDIA were trading at $131.29 as of May 26. Over the last 52-week period, shares are up 16.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on NVIDIA

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on NVIDIA.

Analysts have given NVIDIA a total of 35 ratings, with the consensus rating being Buy. The average one-year price target is $170.43, indicating a potential 29.81% upside.

Understanding Analyst Ratings Among Peers

The below comparison of the analyst ratings and average 1-year price targets of Broadcom, Advanced Micro Devices and Qualcomm, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Broadcom, with an average 1-year price target of $250.92, suggesting a potential 91.12% upside.
• Analysts currently favor an Outperform trajectory for Advanced Micro Devices, with an average 1-year price target of $127.96, suggesting a potential 2.54% downside.
• Analysts currently favor an Neutral trajectory for Qualcomm, with an average 1-year price target of $174.82, suggesting a potential 33.16% upside.

Peer Metrics Summary

In the peer analysis summary, key metrics for Broadcom, Advanced Micro Devices and Qualcomm are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

NVIDIA ranks highest in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity.

Delving into NVIDIA's Background

Nvidia is a leading developer of graphics processing units. Traditionally, GPUs were used to enhance the experience on computing platforms, most notably in gaming applications on PCs. GPU use cases have since emerged as important semiconductors used in artificial intelligence. Nvidia not only offers AI GPUs, but also a software platform, Cuda, used for AI model development and training. Nvidia is also expanding its data center networking solutions, helping to tie GPUs together to handle complex workloads.

NVIDIA: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, NVIDIA showcased positive performance, achieving a revenue growth rate of 77.94% as of 31 January, 2025. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: NVIDIA's net margin excels beyond industry benchmarks, reaching 56.17%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): NVIDIA's ROE excels beyond industry benchmarks, reaching 30.42%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): NVIDIA's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 21.28%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.13.

To track all earnings releases for NVIDIA visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.