Nvidia (NASDAQ: NVDA) is poised to release its fiscal Q1 2025 earnings after the market closes on Wednesday, May 28, 2025.
Investors are keenly watching, anticipating whether the AI chip leader can maintain its growth trajectory amid challenges like U.S. export restrictions to China and macroeconomic uncertainties.
Nvidia’s Q1 2026 Earnings Preview
Analysts project Nvidia’s Q1 revenue to reach approximately $43.3 billion, marking a 66% year-over-year increase. Adjusted earnings per share (EPS) are expected to be around $0.73.
Key Financial Metrics:
- Revenue: Estimated at $43.3 billion, up 66% YoY.
- Adjusted EPS: Projected at $0.73.
- Gross Margins: Expected to be around 70.6% GAAP and 71.0% non-GAAP.
Factors Influencing Nvidia Earnings
AI Demand Surge
Nvidia’s growth is largely driven by the booming demand for AI infrastructure. Major tech companies like Meta, Alphabet, Apple, Amazon, and Microsoft are heavily investing in AI technologies, bolstering Nvidia’s data center segment. Investopedia
Export Restrictions to China
U.S. export restrictions on Nvidia’s H20 chips to China have posed significant challenges. These curbs could lead to a revenue loss of up to $5.5 billion, with China previously accounting for 13% of Nvidia’s revenue.
Blackwell Architecture Rollout
The introduction of Nvidia’s Blackwell architecture is anticipated to drive future growth. However, the ramp-up phase may exert pressure on margins in the near term.
Technical Analysis and Stock Performance
As of Tuesday morning, May 27, 2025, Nvidia’s stock is trading at $135.12. Technical indicators suggest a bullish flag formation, indicating potential for continued upward momentum.
Key Technical Levels:
- Resistance: $143 and $150.
- Support: $121 and $115.
Analyst Sentiment
Analysts maintain a positive outlook on Nvidia, with 16 out of 18 recommending a “buy.” Price targets range from $164 to $175, reflecting confidence in Nvidia’s long-term prospects despite short-term challenges.
Final Word Before Nvidia Earnings
Nvidia’s upcoming earnings report is a critical juncture for the company.
While the AI boom presents significant growth opportunities, challenges like export restrictions and margin pressures cannot be overlooked.
Investors will be closely monitoring the results and guidance to assess Nvidia’s ability to navigate these complexities and sustain its growth trajectory.
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