We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Time to Buy Nvidia's Stock Ahead of its First Post-Split Earnings Report?
Read MoreHide Full Article
Investors are highly anticipating Nvidia’s (NVDA - Free Report) Q2 results on Wednesday, August 28 as this will be the chip giant’s first quarterly report since its 10-for-1 stock split in June.
As the leader in semiconductor chips that power artificial intelligence, Nvidia's stock is only up +4% post-split but has soared over +150% year to date. That said, let’s see if NVDA can get back to its stellar price performance as earnings approach.
Image Source: Zacks Investment Research
Nvidia’s Q2 Expectations
Based on Zacks estimates, Nvidia’s Q2 sales are thought to have soared 109% to $28.24 billion compared to $13.51 billion in the comparative quarter. Steller growth is expected on the bottom line as well with Q2 EPS expected at $0.63 versus $0.27 per share a year ago (EPS of $2.70/10).
Notably, Nvidia has surpassed earnings expectations for six consecutive quarters posting an average EPS surprise of 18.43% in its last four quarterly reports.
Image Source: Zacks Investment Research
Blackwell Update & Outlook
Wall Street will be looking for more updates on Nvidia’s Blackwell series chips which were delayed for three months due to design flaws and are now anticipated to launch during Q4. The Blackwell GPUs are expected to be the highest-performing AI chips on the market and should keep Nvidia ahead of AMD’s (AMD - Free Report) MI300 chips while building on its current H200 series.
This may be critical to reconfirming Nvidia’s enticing outlook with total sales projected to climb 94% in its current fiscal 2025 to $118.1 billion compared to $60.92 billion in FY24. Plus, FY26 sales are expected to leap another 31% to $154.61 billion.
Image Source: Zacks Investment Research
Even better, annual earnings are slated to soar 107% in FY25 and are forecasted to rise another 26% in FY26 to $3.40 per share.
Image Source: Zacks Investment Research
Monitoring Nvidia’s Valuation
Trading around $126, Nvidia’s stock is at a 48X forward earnings multiple which is a premium to the S&P 500’s 23.8X but near AMD’s 46.1X. Furthermore, NVDA trades well below its five-year high of 122.1X forward earnings and at a discount to the median of 55.6X during this period.
Image Source: Zacks Investment Research
Bottom Line
Ahead of its Q2 report, Nvidia’s stock lands a Zacks Rank #3 (Hold). While Nvidia's valuation has become more reasonable, reaching or exceeding Q2 expectations may be critical to more upside along with reconfirming the Q4 launch of its Blackwell series chips which will be crucial to continuing its robust growth.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Time to Buy Nvidia's Stock Ahead of its First Post-Split Earnings Report?
Investors are highly anticipating Nvidia’s (NVDA - Free Report) Q2 results on Wednesday, August 28 as this will be the chip giant’s first quarterly report since its 10-for-1 stock split in June.
As the leader in semiconductor chips that power artificial intelligence, Nvidia's stock is only up +4% post-split but has soared over +150% year to date. That said, let’s see if NVDA can get back to its stellar price performance as earnings approach.
Image Source: Zacks Investment Research
Nvidia’s Q2 Expectations
Based on Zacks estimates, Nvidia’s Q2 sales are thought to have soared 109% to $28.24 billion compared to $13.51 billion in the comparative quarter. Steller growth is expected on the bottom line as well with Q2 EPS expected at $0.63 versus $0.27 per share a year ago (EPS of $2.70/10).
Notably, Nvidia has surpassed earnings expectations for six consecutive quarters posting an average EPS surprise of 18.43% in its last four quarterly reports.
Image Source: Zacks Investment Research
Blackwell Update & Outlook
Wall Street will be looking for more updates on Nvidia’s Blackwell series chips which were delayed for three months due to design flaws and are now anticipated to launch during Q4. The Blackwell GPUs are expected to be the highest-performing AI chips on the market and should keep Nvidia ahead of AMD’s (AMD - Free Report) MI300 chips while building on its current H200 series.
This may be critical to reconfirming Nvidia’s enticing outlook with total sales projected to climb 94% in its current fiscal 2025 to $118.1 billion compared to $60.92 billion in FY24. Plus, FY26 sales are expected to leap another 31% to $154.61 billion.
Image Source: Zacks Investment Research
Even better, annual earnings are slated to soar 107% in FY25 and are forecasted to rise another 26% in FY26 to $3.40 per share.
Image Source: Zacks Investment Research
Monitoring Nvidia’s Valuation
Trading around $126, Nvidia’s stock is at a 48X forward earnings multiple which is a premium to the S&P 500’s 23.8X but near AMD’s 46.1X. Furthermore, NVDA trades well below its five-year high of 122.1X forward earnings and at a discount to the median of 55.6X during this period.
Image Source: Zacks Investment Research
Bottom Line
Ahead of its Q2 report, Nvidia’s stock lands a Zacks Rank #3 (Hold). While Nvidia's valuation has become more reasonable, reaching or exceeding Q2 expectations may be critical to more upside along with reconfirming the Q4 launch of its Blackwell series chips which will be crucial to continuing its robust growth.