Nvidia stock soars after strong Q1 earnings report, revenue and earnings significantly exceed estimates.

From Nasdaq: 2024-05-29 05:30:00

Nvidia’s stock surged 9% to an all-time high after posting a strong Q1 2025 earnings report. Revenue jumped 262% year over year to $26.0 billion, exceeding estimates by $1.5 billion, and adjusted earnings rose 461% to $6.12 per share. Analysts are divided on whether the stock still has room to grow.

In fiscal 2024, Nvidia saw a 126% revenue increase and 288% adjusted EPS growth, driven by the booming AI market. The company generated 87% of its revenue from data center chips in Q1 2025. Nvidia also announced a 10-for-1 stock split, effective June 7, to boost liquidity.

Bulls favor Nvidia for its dominance in the AI market, pricing power, recovering gaming business, and reasonable valuation. Bears worry about losing market share, regulatory hurdles in China, insider selling, and a potential supply glut in AI chips. Despite these challenges, Nvidia’s strengths seem to outweigh its weaknesses.

Investors considering Nvidia should weigh both bullish and bearish arguments before deciding to invest. The Motley Fool’s Stock Advisor service offers insights into Nvidia and other potential stocks with high growth potential. The market outlook for Nvidia remains positive but future growth may face obstacles in a competitive and evolving industry.



Read more at Nasdaq: Nvidia Stock: 4 Reasons to Buy, 4 Reasons to Sell