NVIDIA Earnings Loom: A Closer Look

The Q1 earnings cycle has turned out better than feared, with growth showing an acceleration relative to other periods. The technology sector has undoubtedly contributed its share of weight, helping brighten the overall picture notably.

With the period winding down, most market participants have shifted their attention to one company that has yet to report, namely Nvidia NVDA.

We've all become highly familiar with the stock over the last year, with excitement stemming from AI fueling an unbelievable run among shares. But how do expectations stack up heading into the release?

Let's take a closer look at a few key metrics to watch and recent analyst revisions.

Headline Expectations

Reflecting the optimism surrounding the company, analysts have positively revised their earnings expectations for the release, with the $5.48 Zacks Consensus EPS estimate overall up 11% since the end of February and suggesting 400% year-over-year growth.

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Revenue expectations have unsurprisingly been taken higher as well, with the $24.3 billion Zacks Consensus Sales estimate up 7% over the same timeframe and reflecting a 240% climb from the year-ago period.

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The AI-fueled growth boom can be visually seen in the chart below, which illustrates NVDA's revenue on a quarterly basis.

Image Source: Zacks Investment Research

Key Metrics

Nvidia's Data Center results will, of course, be the main attraction within the quarterly print, encompassing sales of its AI chips. For the upcoming quarter, the Zacks Consensus estimate for Data Center revenue stands at $20.7 billion, 380% higher than the year-ago mark.

Nvidia's Data Center sales have consistently surpassed our consensus expectations recently, with the most recent beat totaling more than $1.4 billion. Impressively, the $20.7 billion expected would reflect yet again another quarterly record for the company.

It's clear that the demand Nvidia has been witnessing has been astonishing, further underpinned by robust expectations.

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In addition, the company's Gaming revenue will also be an area that market participants will tune into, which has shown a nice growth rebound over the last few periods. Growth looks set to continue, with the current $2.6 billion Zacks Consensus estimate suggesting a 17% year-over-year climb.

Nvidia has exceeded our consensus Gaming revenue estimate in six consecutive quarters, reflecting a solid turnaround from the post-pandemic demand crater.

Image Source: Zacks Investment Research

Bottom Line

Nvidia NVDA has been in a league of its own over the last year, consistently surprising the market in a big way thanks to unrelenting demand for AI applications.

Shares are heading into the report in a positive light, underpinned by favorable top and bottom line expectations that have enjoyed upward revisions.

The stock sports a Zacks Rank #2 (Buy), with expectations trending higher across the board.

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