1 Artificial Intelligence (AI) Powerhouse That Could Crush Earnings Expectations Next Month

Nvidia (NASDAQ: NVDA) has a strong history of beating analyst expectations for quarterly earnings and sales. The company has beaten estimates in 9 of the past 10 quarters. According to data compiled by Barchart, Nvidia stock has risen on a majority of those earnings beats, but still fell on several occasions. So while an earnings beat doesn't guarantee a positive price jump, the odds are certainly stacked in that direction. With so much market and trade uncertainty, it's reasonable to expect a weak earnings announcement from the company next month. But there's reason to believe the opposite could happen. As we'll see, Nvidia stands a good chance of beating earnings estimates next month. That, coupled with the stock being down more than 30% so far this year, could potentially lead to a sharp bump in valuation.Nvidia's revenue growth estimates have come down sharply in recent months. Geopolitical tensions have generated uncertainty around global supply chains, especially regarding potential impacts from tariffs. Nearly one-third of Nvidia's sales last year may ultimately be tied to China in some way, whether that's through direct sales to China, related sales to Taiwan, or exports to Singapore that are then reexported to China. Rising pressures between the U.S. and China could make these exports more complicated, expensive, or even impossible to execute. Continue reading

Apr 28, 2025 - 12:13
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1 Artificial Intelligence (AI) Powerhouse That Could Crush Earnings Expectations Next Month

Nvidia (NASDAQ: NVDA) has a strong history of beating analyst expectations for quarterly earnings and sales. The company has beaten estimates in 9 of the past 10 quarters. According to data compiled by Barchart, Nvidia stock has risen on a majority of those earnings beats, but still fell on several occasions. So while an earnings beat doesn't guarantee a positive price jump, the odds are certainly stacked in that direction.

With so much market and trade uncertainty, it's reasonable to expect a weak earnings announcement from the company next month. But there's reason to believe the opposite could happen. As we'll see, Nvidia stands a good chance of beating earnings estimates next month. That, coupled with the stock being down more than 30% so far this year, could potentially lead to a sharp bump in valuation.

Nvidia's revenue growth estimates have come down sharply in recent months. Geopolitical tensions have generated uncertainty around global supply chains, especially regarding potential impacts from tariffs. Nearly one-third of Nvidia's sales last year may ultimately be tied to China in some way, whether that's through direct sales to China, related sales to Taiwan, or exports to Singapore that are then reexported to China. Rising pressures between the U.S. and China could make these exports more complicated, expensive, or even impossible to execute.

Continue reading