Nvidia Stock Drops Ahead of Q1 Earnings Release

Nvidia stock fell 0.5% ahead of its fiscal first quarter earnings report, scheduled to be released around 4:20pm ET. The company's shares closed at $134.81, giving it a market value of approximately $3 trillion. The report is expected to provide insight into the chip maker's financial performance and growth prospects.

Nvidia Corporation (NVDA) stock fell 0.5% ahead of its fiscal first quarter earnings report, scheduled for release around 4:20 PM ET on May 30, 2025. The company's shares closed at $134.81, giving it a market value of approximately $3 trillion. Investors are eagerly awaiting the report to gain insights into the chip maker's financial performance and growth prospects.

Key Expectations:

1. Revenue: Analysts expect Nvidia to report revenues of $44.1 billion for the quarter ended April 27, 2025, according to [1]. This represents a 12% increase from the previous quarter and a 69% year-over-year growth. The company's strong performance in the data center and gaming segments is expected to drive this growth.

2. Earnings: The consensus estimate for earnings per share (EPS) is $0.81, according to [1]. However, the company's earnings may be impacted by a $4.5 billion charge related to export restrictions on its H20 products to China.

3. Gross Margin: Gross margins are expected to be 60.5% on a GAAP basis and 61.0% on a non-GAAP basis, according to [1]. Excluding the H20 charge, the non-GAAP gross margin would be 71.3%.

4. Outlook: Nvidia expects revenue of $45.0 billion for the second quarter of fiscal 2026, with a loss in H20 revenue of approximately $8.0 billion due to export control limitations. The company also expects gross margins to be in the mid-70% range by the end of the year.

Key Highlights:

- Nvidia's Blackwell NVL72 AI supercomputer is now in full-scale production across system makers and cloud service providers.
- The company is building factories in the U.S. and working with partners to produce AI supercomputers in the U.S.
- Nvidia has announced several partnerships and initiatives to advance AI development and infrastructure.

Investment Implications:

The sustainability of Nvidia's stock price movement will depend on the company's earnings report and management's commentary on the earnings call. Investors should also consider the company's earnings outlook and the broader semiconductor industry's performance.

References:

[1] https://www.nasdaq.com/articles/nvidia-nvda-q1-earnings-miss-estimates
[2] https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2026