Here’s what Nvidia Q1 earnings must deliver to please shareholders

on May 20, 2024
  • Nvidia is scheduled to report its Q1 earnings on May 22nd.
  • Paul Meeks explains what $NVDA must deliver this week.
  • Nvidia stock is currently up more than 90% year-to-date.

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Coming in ahead of Street estimates for its first financial quarter on Wednesday may not be sufficient for Nvidia Corp (NASDAQ: NVDA), says Paul Meeks of Harvest Portfolio Management.

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What Meeks wants $NVDA to establish in its Q1 release

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Consensus is for the semiconductor behemoth to report $24.5 billion in revenue for its fiscal Q1. But Meeks expects “some investors to be disappointed” if $NVDA does not come in at $26 billion at least.

He agreed that the titan’s future guidance would be paramount in determining the shareholder response to its earnings report this week and added on CNBC’s “Squawk Box” today:

What Nvidia has to do is make us feel that there’s a long runway here; that its competitors are further behind than people think [and] they won’t take as much market share from $NVDA.

Nvidia stock is up more than 90% for the year ahead of its earnings report.

Could Nvidia remain dominant in AI inference?

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Nvidia Corp must establish that it will “continue to have as dominant a market share in AI inference as they’ve had in AI LLM building”, Meeks told CNBC on Monday.

He agreed that the chipmaker is brilliant in terms of execution but said the possibility of it losing some share in inference remains on the table considering “inference does not require as strong a computing power”.

The chief investment officer of Harvest Portfolio Management expects “real competition” to hit $NVDA in inferencing.

Note that the Nasdaq-listed firm is expected to double its EPS this year but grow that metric by only 30% in 2025. Nonetheless, Wall Street currently has a consensus “buy” rating on Nvidia stock at writing.

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