Nvidia Shares Trade Higher Prior to Release of Q1 Earnings

Nvidia shares were up by around 4% during the trading session at the beginning of the week days before the chip-maker is scheduled to announce its quarterly earnings report for the first fiscal quarter. Shares of the company have risen 17.5% year to date have surged over the past year due to positive sales coming from its core businesses including its graphics processor units which saw a booming sales since last year.

First Quarter Expectations

The company is expected to deliver its fiscal first quarter financial results on Thursday after the market closes. Nvidia have been forecasted to post earnings of $1.47 per share compared to its earnings of $0.85 each share during the same period last year. 

The surge in the demand for graphics processors due to the growth in the number of cryptocurrency miners since last year have pushed sales of the company during the past couple of quarters coupled with the success of its artificial intelligence unit, parts needed in gaming devices as well as data centers.

Nvidia is also estimated to post sales of around $2.89 billion representing a growth of 49% for the fiscal first quarter. Analysts and investors have also stated that they will be primarily looking at the company’s numbers coming from its core sectors including graphics processing units, data centers, and artificial intelligence.

During the previous quarter, Nvidia was able to exceed most analyst expectations for its fourth quarter income and revenue posting earnings of $1.78 per share largely beating expectations of $1.17 per share in earnings as well as posting $2.91 billion in revenue beating expectations of $2.69 billion showing a 34% rise from the same quarter a year ago.

Nvidia Shares

Nvidia shares which have gone up by more than 17% year to date is expected to surge by as much as 8% should its upcoming earnings report meet analyst targets. Analysts have given Nvidia’s stock a price target of around $230 from previous targets of $200 per share during the past couple of months due to an overall improved outlook on the company’s growth.

The company who is scheduled to deliver its earnings report after the market closes is expected sales of the company led by cryptocurrency miners as well as its booming gaming segment may drive a strong quarter also led by their growing data center business.

Concerns of the market regarding the company’s possible venture into self-driving cars may also be eased during the earnings report potentially pushing the outlook for the stock higher after Thursday’s session.

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