Can Nvidia Keep Up the Pace With Q1 Earnings?

Nvidia Corp. (NASDAQ: NVDA) is scheduled to report its fiscal first-quarter financial results after the markets close on Thursday. The consensus forecast calls for $1.68 in earnings per share (EPS) and $2.98 billion in revenue. The same period of last year reportedly had $0.88 in EPS and $2.22 billion in revenue.

A recent incredibly bullish report from BMO Capital analyst Ambrish Srivastava had street-high target price for Nvidia. Srivastava upgraded the stock to Outperform and raised its price target to $425 from $285. This new target implies an upside of roughly 25%.

Overall, BMO is bullish on Nvidia as the chipmaker moves toward genomics as the “compute landscape” has shifted over the past few years.

Srivastava explained his thinking in the report:

While the CPU will always be an important part of the solution, the GPU, and specifically what Nvidia has done with its GPU along with its software architecture, positions the company uniquely to be the prime beneficiary as we look over the next five years or so. We also believe the acquisition of Mellanox makes Nvidia an even more formidable presence in the data center market.

Considering the current market climate, Nvidia’s data center business should be booming. BMO increased its annual data center run-rate forecast to at least $20 billion in 2020, up from its previous forecast of $4.8 billion.

Nvidia stock has outperformed the S&P 500 and Dow Jones industrial average with a gain of more than 52% year to date. In the past 52 weeks, the share price is up about 131%.

A few other analysts have weighed in since:

  • BMO Capital Markets rates it as Market Perform and a $200 price target.
  • Credit Suisse has an Outperform rating with a $425 price target.
  • Susquehanna has a Positive rating and a $410 price target.
  • RBC has an Outperform rating with a $385 target price.
  • BMO Capital Markets rates it as Outperform with a $425 target.
  • Nomura’s Sell rating comes with a $230 price target.
  • Bernstein has a Buy rating and a $360 price target.

Nvidia stock traded at $359.06 on Thursday, in a 52-week range of $132.60 to $363.50. The consensus price target is $300.40.