Nvidia Stock Approaching Buy Point Ahead of Q1 Report

Nvidia, the artificial intelligence technology leader, exceeded Wall Street’s expectations for its fiscal first quarter and provided a strong outlook for the current period. The company also announced a 10-for-1 stock split, causing its stock to rise in after-hours trading.

In the quarter ended April 28, Nvidia earned an adjusted $6.12 per share on sales of $26 billion, surpassing analysts’ estimates of $5.60 per share on sales of $24.59 billion. This marked the fourth consecutive quarter of triple-digit percentage growth in sales and earnings for Nvidia.

For the current quarter, Nvidia anticipates sales of $28 billion, higher than the consensus estimate of $26.62 billion. The company’s stock surged 4.4% in after-hours trading to $991.02, following a 0.5% dip during the regular session to close at $949.50.

Investor concerns leading up to Nvidia’s earnings report included U.S. trade restrictions with China and the company’s ability to meet demand due to component shortages. Additionally, analysts are wary of a potential sales slowdown when newer graphics processing units become available later this year.

Nvidia’s stock performance has significantly impacted key stock market indexes and exchange-traded funds, with the company accounting for 5.3% of the S&P 500, 6.5% of the Nasdaq 100, and 20.6% of the VanEck Semiconductor ETF. Last year, Nvidia’s stock surged 239%, and year-to-date, it is up 92%.

The next major event for Nvidia will be CEO Jensen Huang’s keynote speech at the Computex trade show on June 2, where he will join other chipmaker executives in discussing industry trends. Nvidia stock is featured on multiple IBD stock lists and is considered one of the top-performing stocks of last year.