Nvidia Earnings Preview: NVDA to Roar Higher?
Nvidia Earnings Preview: NVDA to Roar Higher?
The results will close out the earnings season for the three most prominent chip makers in the United States
- Nvidia to report earnings on Wednesday, May 22, after market close.
- Investors expect EPS of $5.48 and revenue of $24.7 billion.
- Demand outlook and supply chain issues in focus for investors.
Nvidia (NVDA) is set to report its 2025 first-quarter fiscal earnings on Wednesday, May 22, after the market closes.
The results will close out the earnings season for the three most prominent chip makers in the United States, following announcements from Intel (INTC) and Advanced Micro Devices (AMD), Nvidia’s main competitors.
NVDA has posted stellar gains so far this year—rising about 90% on a year-to-date basis. That compares to the Nasdaq 100’s 11% gain over the same time. Indeed, the overall chip sector has outperformed—rising about 34% for the year to date—but Nvidia’s performance is undeniable. Will the stellar returns continue after it announces earnings?
What do investors expect?
Analysts expect NVDA to post earnings per share (EPS) of $5.48 and revenue of $24.7 billion, according to Yahoo Finance. That would be up from EPS of $0.98 and revenue of $6.5 billion a year ago, and up from last quarter’s $5.16 EPS and $22.1 billion revenue.
Over the past 30 days, those estimates have come down just a bit, falling from an expected EPS of $5.53. However, the current expected figure is up from $4.87 per share 90 days ago.
Nvidia has exceeded expectations in four of the last four earnings reports, which sets investors up to expect that trend to continue. While competitors like AMD and Intel have made progress, Nvidia holds a commendable lead in the graphic processing unit (GPU) market, commanding about 80% of global market share for the chips—which are preferred for artificial intelligence applications.
Nvidia’s guidance will be key to the stock price reaction on Wednesday and where it opens the following trading day. Data center operators have put out optimistic growth plans that will require a lot of processing power. They will likely have to source much of that from Nvidia. Will this translate into a strong outlook for its chips?
Supply problems will likely need to be addressed in some fashion, as they have been a challenge for the chip sector since the COVID-19 pandemic. Whether Nvidia will be able to keep up with any lofty demand goals is another important question investors want answered.
Trading Nvidia earnings
Nvidia trades with an implied volatility rank (IVR) of 68.8 and the stock is near its all-time highs traded back in March.
The implied move based on the May 24 options expiration strike shows an implied move of +/- 89 points. A hypothetical trade with a neutral to positive outlook would be a short put vertical with the short strike at the implied move, which would be at 860 based on the May 16 price of 948.
With the long strike at the 855 put, it would give a probability of profit of 78% and a max profit of $110 and a max loss of $390.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.