NVIDIA Company (NASDAQ: NVDA) is ready to launch its quarterly earnings report on Might 22, 2024, and the anticipation is palpable amongst traders and analysts alike. The corporate, which has seen a meteoric rise in its inventory worth and market valuation over the previous few years, is anticipated to proceed its spectacular development trajectory, pushed largely by its dominance within the synthetic intelligence (AI) and information middle markets.
NVIDIA’s Latest Efficiency and Development
NVIDIA’s monetary efficiency in latest quarters has been nothing in need of spectacular. For the third quarter of fiscal 2024, the corporate reported report income of $18.12 billion, a 206% enhance from the identical interval a yr in the past, and a 34% enhance from the earlier quarter. This development was primarily fueled by the info middle section, which noticed a 279% year-over-year enhance in income, reaching $14.51 billion. The corporate’s GAAP earnings per diluted share for the quarter have been $3.71, up greater than 12 instances from a yr in the past, whereas non-GAAP earnings per diluted share have been $4.02, up practically six instances from the earlier yr. For the fourth quarter of fiscal 2024, NVIDIA continued its sturdy efficiency, reporting income of $22.1 billion, up 22% from the earlier quarter and up 265% from a yr in the past. GAAP earnings per diluted share for the quarter have been $4.93, up 33% from the earlier quarter and up 765% from a yr in the past, whereas non-GAAP earnings per diluted share have been $5.16, up 28% from the earlier quarter and up 486% from a yr in the past. For the total fiscal yr 2024, NVIDIA’s income was up 126% to $60.9 billion, with GAAP earnings per diluted share of $11.93, up 586% from a yr in the past, and non-GAAP earnings per diluted share of $12.96, up 288% from a yr in the past.
Expectations for the Upcoming Earnings Report
As NVIDIA prepares to announce its earnings for the primary quarter of fiscal 2025, analysts predict vital revenue and income features. The consensus estimate for income is $24.22 billion, which might characterize a 237% enhance from the identical interval a yr in the past. Analysts additionally count on earnings per share (EPS) to be round $5.50, a 405% enhance from the earlier yr. These expectations are pushed by the continued sturdy demand for NVIDIA’s AI and information middle merchandise, in addition to the corporate’s skill to constantly exceed market expectations.
Analyzing NVIDIA with Validea’s Guru Fashions
To take a look at how NVIDIA stacks up essentially after its large run, let’s check out it by means of the lens of Validea’s Guru Evaluation. The Guru Evaluation relies on the funding methods of legendary traders and presently offers NVIDIA an general ranking of “C”, suggesting the inventory reveals some basic strengths but additionally has noticeable weaknesses.
| Validea Guru Technique | Rating |
| Twin Momentum Investor | 100% |
| Momentum Investor | 89% |
| Quantitative Momentum Investor | 88% |
| Earnings Revision Investor | 80% |
| Development/Worth Investor | 80% |
| Development Investor | 69% |
| Contrarian Investor | 64% |
| Worth Investor | 57% |
| P/B Development Investor | 55% |
| Small-Cap Development Investor | 55% |
| P/E Development Investor | 54% |
| Low PE Investor | 42% |
| Worth/Gross sales Investor | 40% |
| Milennial Investor | 40% |
| Shareholder Yield Investor | 30% |
| Worth Composite Investor | 28% |
| Multi-Issue Investor | 25% |
| Non-public Fairness Investor | 14% |
| Affected person Investor | 1% |
| E book/Market Investor | 0% |
| Earnings Yield Investor | 0% |
| Acquirer’s A number of Investor | 0% |
particular guru methods, NVIDIA scores extremely on Dashan Huang’s Twin Momentum Investor strategy with a 100% rating. This technique favors shares with sturdy basic and worth momentum. NVIDIA’s basic momentum locations it within the prime sixth percentile, whereas its worth momentum over the previous yr (excluding the newest month) ranks within the prime 2nd percentile. The mixture of those two components places NVIDIA within the prime 1st percentile, simply passing Huang’s standards.
NVIDIA additionally scores properly on Validea’s Momentum Investor technique with an 89% rating. The corporate’s spectacular quarterly EPS development of 764.91%, constant annual earnings development, and robust relative power all contribute to its excessive rating. Nevertheless, NVIDIA falls brief on a number of standards, comparable to insider possession and being in a top-performing trade.
The Quantitative Momentum Investor technique by Wesley Grey offers NVIDIA an 88% rating, noting the inventory’s sturdy and constant intermediate-term momentum. NVIDIA’s 12-month minus 1-month return ranks within the prime 2nd percentile, and its return consistency locations it within the prime sixth percentile.
Different notable scores embrace an 80% on the Development/Worth Investor technique by James O’Shaughnessy, which seems to be favorably on NVIDIA’s massive market cap, sturdy money flows, and excessive trailing 12-month gross sales. Nevertheless, the inventory’s low dividend yield prevents it from passing this technique completely.
NVIDIA scores decrease on value-oriented methods like Benjamin Graham’s Worth Investor (57%) and the Affected person Investor by Warren Buffett (1%). This isn’t shocking given the corporate’s excessive valuation and speedy development.
Whereas NVIDIA could not enchantment to strict worth traders, the corporate’s sturdy momentum, constant earnings development, and dominant place within the AI and information middle markets make it a sexy possibility for growth-oriented traders. As NVIDIA heads into its earnings report, the Guru Evaluation means that the corporate’s fundamentals stay strong, regardless of some weaknesses. Buyers will probably be intently watching to see if NVIDIA can preserve its spectacular development trajectory and meet or exceed market expectations.
Analysis Hyperlinks
