Nvidia stock surging 20% ahead of Q1 earnings due to massive AI investments

From Nasdaq: 2025-05-23 17:49:00

1. Nvidia’s stock has surged over 20% this month ahead of its Q1 results. Big tech firms like Amazon, Alphabet, Microsoft, and Meta are collectively investing over $300 billion in AI by 2025, with U.S. corporate AI investment expected to exceed $500 billion. Nvidia’s Q1 report is due on May 28.
2. Nvidia’s CEO predicts a 300% growth in AI investments over the next three years, focusing on Blackwell GPU production. The company’s capital expenditures have risen by over 200% this year. Nvidia also holds a significant stake in CoreWeave and has secured multi-billion-dollar agreements globally, including with Saudi Arabia’s Humain.
3. Analysts estimate Nvidia’s Q1 sales to have soared by 64% to $42.64 billion, with EPS expected to increase by 39% to $0.85. The stock’s technical analysis shows a bullish trend, with a potential post-earnings selloff signaling a bearish downturn. Nvidia’s forward P/E ratio is 30.9X, offering a discount compared to other tech giants.
4. Ahead of its Q1 report, Nvidia stock is ranked #3 (Hold) by Zacks. The stock has seen significant gains in recent years and trades below its historical high forward P/E ratio. Investors will closely monitor Nvidia’s CapEx spend and guidance, as sequential growth starts to slow down.
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Read more at Nasdaq: Will Nvidia Stock Keep Rebounding as Q1 Earnings Approach?