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Nvidia Stock: A 'Growth Story Intact' Ahead of Q4 Earnings

Theodore QuinnTuesday, Feb 25, 2025 12:37 pm ET

4min read

Nvidia Corporation (NASDAQ: NVDA) is set to report its fourth-quarter earnings on Wednesday, February 28, 2024, with analysts expecting strong results driven by the company's dominant position in AI and data center markets. Despite recent market volatility, Nvidia's stock has been resilient, and some analysts believe it remains undervalued.

Nvidia's growth story has been driven by several key factors, including its pioneering use of GPUs for AI, leadership in AI hardware, robust software ecosystem, strategic acquisitions, and expansion into key AI markets. The company's AI hardware, such as the NVIDIA A100 and H100 GPUs, and platforms like CUDA and TensorRT, have empowered businesses to scale AI deployments efficiently. Additionally, Nvidia's AI Enterprise platform provides enterprise-grade AI solutions, simplifying AI deployment for businesses across industries.

NVDA Total Revenue interval growth value, Net Income interval growth value...

Name
Date
Total Revenue interval growth value
Net Income interval growth value
Total Revenue interval growth rate%
Basic EPS interval growth rate%
Basic EPS interval growth value

NvidiaNVDA

20200331-20241231

19.88B

11.89B

895.63

666.15

4.33

Analysts' expectations for Nvidia's Q4 earnings reflect the company's strong performance and growth prospects. The average revenue estimate for the quarter is $22.10 billion, with a net income estimate of $12.29 billion and diluted EPS of $4.93. These estimates represent year-over-year increases of 265%, 769%, and 765%, respectively, compared to the same quarter in 2023.

Despite the strong earnings expectations, some analysts caution that Nvidia's stock may be vulnerable to short-term market fluctuations and geopolitical risks. However, the company's long-term growth prospects remain intact, driven by the increasing demand for AI and data center solutions across various industries.

In conclusion, Nvidia's stock appears to be undervalued ahead of its Q4 earnings, with analysts expecting strong results and a 'growth story intact.' The company's dominant position in AI and data center markets, driven by its innovative hardware and software ecosystem, positions it well for continued growth and success. However, investors should remain vigilant for potential short-term market fluctuations and geopolitical risks that may impact the company's performance.