Nvidia: Don't Fall For The Greed Before The Q1 Earnings Print

Summary

  • In the last quarter, Nvidia Corporation significantly increased its revenue, reaching historically high margins. But what to expect for fiscal Q1 FY2025? Read on.
  • Nvidia has unveiled notable breakthroughs, from the Ampere A100 Tensor Core GPU to the latest Blackwell B200 chip, which has doubled in size compared to its predecessor, the Hopper H100.
  • Despite the recent growth rates and solid margins, I believe Nvidia faces challenges from rising overall competition, potential deceleration in demand (short-term), and increased competition in the accelerator market.
  • Even though the stock appears expensive based on most valuation multiples, there are exceptions - the forwarding growth may explain the price, but only if the expectations are met.
  • Let's see if institutional investors trim or increase their allocations before the company's earnings announcement day as we preview Nvidia's upcoming report.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Фиолетовый логотип nVidia на воздушном шаре в городской среде

David Tran/iStock Editorial via Getty Images

Introduction

I initiated coverage of Nvidia Corporation (NASDAQ:NVDA) stock back in February 2024, when I discussed investment cycles and noted that Nvidia would have to face stiff competition from Advanced Micro

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Oakoff Investments is a personal portfolio manager and a quantitative research analyst with 5 years helping readers find a reasonable balance between growth and value by sharing proprietary Wall Street information.

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Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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