Nvidia: Why I Am Doubling Down On The Drop

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On the Pulse
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(9min)

Summary

  • Nvidia's 1Q25 earnings beat expectations, but investor fatigue led to a muted stock response, creating a buying opportunity for long-term investors.
  • NVDA's sales nearly doubled YoY, driven by strong data center GPU demand, with profits growing even faster than sales.
  • The upcoming Blackwell-themed data center GPU launch in Q4 is expected to be a significant catalyst for Nvidia's sales and profit growth in 2025.
  • Despite a slight deceleration in sales growth, the Company's long-term prospects remain strong, supported by robust demand for AI-capable GPUs and high gross margins.

Nvidia Corporation building in Taipei, Taiwan.

BING-JHEN HONG

Earnings for Nvidia Corp. (NASDAQ:NVDA) beat investor's expectations with respect to sales and profits, yet the market didn't really respond as favorably to the company's earnings as it used to in the past. This, in my view, could indicate some short-term fatigue

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13K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. 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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