NVIDIA’s Q1 Earnings Coming Up: Time to Buy, Sell or Hold the Stock?

From Nasdaq: 2025-05-22 06:24:00

NVIDIA Corporation (NVDA) is gearing up to announce its first-quarter fiscal 2026 results on May 28, with revenues projected at $43 billion. The Zacks Consensus Estimate stands at $42.71 billion, a significant 64% jump year-over-year. Quarterly earnings forecasted at 87 cents per share, indicating a 42.6% increase from the previous year.

Despite a Zacks Rank #3, NVIDIA’s Earnings ESP is -5.24%, suggesting no likely earnings beat this quarter. The company’s first-quarter performance is expected to benefit from strong demand in its Datacenter, Gaming, Professional Visualization, and Automotive segments.

NVIDIA stock has gained 27% in the past year, outperforming the Semiconductor industry. Trading at a premium with a forward 12-month P/S of 15.48X, compared to the industry’s 13.26X, signals a stretched valuation. The company’s dominance in generative AI chips positions it favorably for future growth.

Investors should consider NVIDIA’s leading position in GPUs, AI, data centers, and autonomous vehicles. While the stock’s high valuation may lead to short-term volatility, its strong product portfolio and innovation make it a compelling investment. Holding the stock for now is advised.



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