Nvidia's Valuation: Examining the Impact of New AI Product Launches and Enterprise Partnerships

Nvidia (NVDA) is set to report Q1 earnings amidst strong product launches and partnerships. The stock has surged 41% in the past year and 35% in the past three months. However, some investors question whether the stock has already priced in future AI growth. According to KiwiInvest, the stock is 6.8% overvalued based on strong revenue trajectory and AI dominance assumptions. Despite this, Nvidia's persistent advancement in AI hardware and ongoing competitive strength are expected to drive future growth.

Nvidia Corporation (NVDA) is set to release its Q1 2025 earnings report after the market closes on Wednesday, August 27. The tech giant, known for its graphics processing and computing solutions, is expected to report strong financial performance, driven by robust product launches and strategic partnerships. Despite the ongoing China-US trade war, Nvidia's stock has surged 41% in the past year and 35% in the past three months.

The company's Q1 2025 earnings report is anticipated to highlight the impact of the China-US trade war on the tech industry. Nvidia's net sales are expected to be $46.45 billion, representing a 50% year-over-year (YoY) increase. The majority of these sales, 77.8%, are anticipated to come from computing and networking solutions, while 22.2% will be from graphics processors [1].

However, Nvidia's financial performance may be impacted by the ongoing trade war. The company has reportedly told suppliers to suspend production of its H20 chip due to security concerns raised by Beijing. This move is expected to impact the company's revenue, particularly in its data center business, which has been a primary growth engine [1]. The potential exclusion of $8 billion in Chinese sales due to Trump-era policies further underscores the fragility of Nvidia's revenue streams in the region [2].

Despite these challenges, Nvidia's strong performance is driven by the continued strength in its Data Center business. The company's AI chips, including the A100, H100, B100, B200, and GB200, are the top choices for building and running powerful AI applications, positioning Nvidia as a leader in the generative AI market [1].

KeyBanc Capital Markets has predicted that Nvidia’s Q3 guidance could be lower than the consensus due to uncertainties in China. The brokerage noted that Nvidia’s outlook might “exclude direct revenue from China given pending license approvals and uncertainty on timing.” If sales from China were included, it could potentially boost revenues by an additional $2-3 billion [2].

Nvidia's strong product portfolio and leadership in AI make it a compelling investment opportunity. Analysts' overwhelmingly bullish stance suggests that investors should closely monitor Nvidia's earnings report and the company's response to the China export curbs.

References:
[1] https://www.ainvest.com/news/nvidia-q1-earnings-reveal-fallout-china-trade-war-fallout-2508/
[2] https://247wallst.com/forecasts/2025/08/26/nvidia-nvda-price-prediction-and-forecast/