Nvidia (NVDA) Q1 Earnings: What To Expect

Adam Hejl /
2022/05/24 7:00 am EDT

Leading designer of graphics chips Nvidia (NASDAQ:NVDA) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter Nvidia reported revenues of $7.64 billion, up 52.7% year on year, beating analyst revenue expectations by 2.87%. It was a very strong quarter for the company, with a very optimistic guidance for the next quarter and an exceptional revenue growth.

Is Nvidia buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nvidia's revenue to grow 42.9% year on year to $8.09 billion, slowing down from the 83.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 per share.

Nvidia Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 4.2%.

Looking at Nvidia's peers in the processors and graphics chips segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Qorvo delivered top-line growth of 8.7% year on year, beating analyst estimates by 1.38% and Qualcomm reported revenues up 40.6% year on year, exceeding estimates by 5.32%. Qorvo traded down 3.25% on the results, Qualcomm was up 4.32%. Read our full analysis of Qorvo's results here and Qualcomm's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the semiconductor stocks have fared somewhat better, they have not been spared, with share price declining 3.32% over the last month. Nvidia is down 16.7% during the same time, and is heading into the earnings with analyst price target of $310.6, compared to share price of $165.39.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.