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

2 weeks ago 6

Ryan Vanzo, The Motley Fool

Mon, Apr 28, 2025, 4:00 AM 4 min read

Nvidia (NASDAQ: NVDA) has a beardown past of beating expert expectations for quarterly net and sales. The institution has beaten estimates successful 9 of the past 10 quarters. According to information compiled by Barchart, Nvidia banal has risen connected a bulk of those net beats, but inactive fell connected respective occasions. So portion an net bushed doesn't warrant a affirmative terms jump, the likelihood are surely stacked successful that direction.

With truthful overmuch marketplace and commercialized uncertainty, it's tenable to expect a anemic net announcement from the institution adjacent month. But there's crushed to judge the opposite could happen. As we'll see, Nvidia stands a bully accidental of beating net estimates adjacent month. That, coupled with the banal being down much than 30% truthful acold this year, could perchance pb to a crisp bump successful valuation.

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Nvidia's gross maturation estimates person travel down sharply successful caller months. Geopolitical tensions person generated uncertainty astir planetary proviso chains, particularly regarding imaginable impacts from tariffs. Nearly one-third of Nvidia's income past twelvemonth whitethorn yet beryllium tied to China successful immoderate way, whether that's done nonstop income to China, related income to Taiwan, oregon exports to Singapore that are past reexported to China. Rising pressures betwixt the U.S. and China could marque these exports much complicated, expensive, oregon adjacent intolerable to execute.

More importantly, however, extremity marketplace request -- particularly from information centers -- continues to impress. Nvidia's information halfway conception experienced 93% maturation twelvemonth implicit twelvemonth past quarter. Nvidia's absorption squad has agelong expected this maturation tailwind to proceed for years to come. Previous estimates called for information halfway superior expenditures to deed $1 trillion industrywide by 2032, though that forecast has present been pulled guardant to 2030. In a nutshell, the biggest operator of Nvidia's maturation successful caller years remains intact, and whitethorn beryllium adjacent stronger adjacent word than galore predict.

But it's not conscionable extremity marketplace request that could boost results supra expectations. Share buybacks could besides play a role. Last August, the institution announced a $50 cardinal banal buyback program. As of past quarter, the institution has repurchased astir $33.7 cardinal successful shares, leaving $16.3 cardinal remaining. The stock buyback programme has already helped fractionally boost net per share. And if absorption was feeling aggressive, it whitethorn person stepped up these repurchases fixed Nvidia's anemic stock terms truthful acold this year. If stock buybacks accelerate much than expected, we could spot that construe into amended per-share results, fixed the full fig of outstanding shares would beryllium little than astir analysts are predicting.