What You Need to Know Ahead of NVIDIA's Earnings Release
Valued at a whopping $3.4 trillion by market cap, Santa Clara, California-based NVIDIA Corporation (NVDA) operates as the largest semiconductor company in the world. Renowned for its pioneering work in accelerated computing, NVIDIA's invention of the GPU revolutionized the PC gaming industry and redefined computer graphics. It also sparked the modern AI era and drove the creation of the metaverse. Over the years, NVIDIA has transformed into a full-stack computing company with solutions that are reshaping global industries.
The semiconductor giant is expected to release its fourth-quarter results on Wednesday, Feb. 19. Ahead of the event, analysts expect NVIDIA to report a profit of $0.79 per share, up a staggering 61.2% from $0.49 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its EPS for the last reported quarter surged 110.8% year-over-year to $0.78, exceeding analysts' estimates by 11.4%.
For the full fiscal 2025, NVIDIA is expected to deliver an EPS of $2.78, up a massive 135.6% from $1.18 in fiscal 2024. While in fiscal 2026, its earnings are expected to grow 43.2% year-over-year to $3.98 per share.
NVDA stock prices have soared 136.7% over the past 52 weeks, significantly outperforming the S&P 500 Index’s ($SPX) 25% surge and the Technology Select Sector SPDR Fund’s (XLK) 17.9% returns during the same time frame.
Given AI is transforming industries, companies and countries across the globe, the world has been observing a steeply increasing demand for semiconductor chips which has boosted NVIDIA’s topline growth. NVDA stock prices observed a marginal uptick in the trading session after the release of its impressive Q3 results on Nov. 20. The company reported a record quarterly Data Center revenue of $30.8 billion, up an astonishing 112% from the year-ago quarter. This resulted in a 93.6% year-over-year increase in total revenues, reaching a record $35.1 billion. Additionally, even after significantly increasing its R&D spending, NVIDIA achieved a 108.9% year-over-year growth in net income to $19.3 billion.
NVIDIA anticipates this growth to continue over the upcoming quarters, with the company providing a midpoint topline guidance of $37.5 billion for Q4, reflecting a robust 6.8% quarter-on-quarter growth in revenues.
Furthermore, analysts remain strongly bullish on the stock’s prospects. NVDA has a consensus “Strong Buy” rating overall. Out of the 43 analysts covering the stock, 36 recommend “Strong Buy,” three suggest “Moderate Buy,” and four advise a “Hold” rating. Its mean price target of $176.55 represents a 25.4% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.