Q2 2025 NVIDIA Earning Previews: Huge Growth Catalysts Ahead for AI and Data Centers

NVIDIA ($NVDA) Earnings Preview: Analyzing Analyst Expectations

Analysts are forecasting a staggering 66.45% year-over-year jump in revenue for NVIDIA (NVDA) when the company reports earnings on May 28, 2025, after the market closes. That's a powerful statistic right upfront, showing just how much growth is expected.

As you look towards this upcoming earnings report, you're likely wondering what the numbers will tell us about the company's performance and future trajectory. This preview analyzes the key expectations and metrics surrounding NVIDIA ($NVDA) ahead of the announcement.

Earnings Expectations

Wall Street analysts project NVIDIA ($NVDA) to report revenue of $43.35 billion for the quarter, representing that significant 66.45% growth compared to the same period last year. Earnings per share (EPS) are expected to hit $0.93, an increase of 51.96% year-over-year. These figures reveal strong anticipated growth, underscoring the market's high expectations for NVIDIA's (NVDA) business.

Business Metrics

Looking at business segments provides a more detailed view. Based on the latest available data, a key segment like Power Products has seen some fluctuation, most recently reporting $90.8 million in revenue as of late December 2024, a 6.49% decrease from the prior period. Understanding performance across key areas helps in analyzing NVIDIA's ($NVDA) overall health.

For more detailed business metrics, including performance by industry and region, you can follow this link: here.

Recent Stock Performance

How has the stock been doing lately? As of the latest data, NVIDIA ($NVDA) is trading around $118.11. Here's a snapshot of its recent performance:

• 1-Week Return: 5.82%
• 1-Month Return: 22.65%
• 3-Month Return: -9.03%
• 6-Month Return: -20.00%
• 1-Year Return: 30.64%

While the longer-term picture shows solid gains, the 3-month and 6-month returns highlight some recent choppiness before a strong rebound in the last month and week. Access concise statistics and key financial ratios for NVIDIA Corporation – view them here.

Technical & Momentum Indicators

Looking at technical indicators can offer insights into the stock's price action:

• RSI: 58.68 (Neutral to strong momentum)
• MFI: 57.88 (Neutral to strong momentum)
• StochRSI: 96.03 (Indicating potentially overbought conditions)
• CCI: 121.74 (Indicating strong upside momentum)

The stock's current price ($118.11) is trading above both its 20-day Simple Moving Average ($108.74) and 20-day Exponential Moving Average ($110.13), suggesting recent upward price momentum. The StochRSI and CCI readings suggest strong recent buying activity. Analyzing these technicals helps understand recent trading behavior around NVIDIA ($NVDA).

Options Activity

Options trading can sometimes signal market sentiment. Here's a look at the recent activity for NVIDIA ($NVDA):

• Total Premium: $939.47 million
• IV Rank: 61.9 (Moderate to high implied volatility)
• Call Volume: 1,564,974
• Put Volume: 803,618
• Put-Call Ratio: 0.51 (Leaning bullish with significantly more call than put volume)
• Total Open Interest: 20,096,610
• Change in Open Interest: 221,234 (Increase in outstanding contracts)
• IV30: 0.52 (Expected volatility over the next 30 days)

The substantial call volume relative to put volume and a put-call ratio below 1 suggest a generally bullish sentiment among options traders recently. The high open interest indicates significant positioning in NVIDIA ($NVDA) options. Access real-time options chains and key derivatives data for NVIDIA Corporation – explore them here.

Short Interest

Short interest data tells us about the number of shares being bet against the stock:

• Short Float %: 1.13%
• Shares Short: 262.96 million
• % of Shares Outstanding: 1.08%
• Fail-to-Deliver Shares: 128,481
• Relative FTD (%): 0.05%

Short interest in NVIDIA ($NVDA) appears relatively low, suggesting that a large number of investors are not actively betting on a significant price decline in the near term. Access up-to-date short interest figures for NVIDIA Corporation via Short Interest Data.

Analyst Ratings & Targets

What do the professionals on Wall Street think?

• Number of Ratings: 41
• Overall Rating: Buy
• Average Price Target: $169.00
• Top Analyst Rating: Buy
• Top Analyst Price Target: $167.50

The consensus among analysts covering NVIDIA ($NVDA) is a "Buy" rating, with an average price target significantly above the current price, indicating optimism about the stock's future potential. Top analysts also maintain a "Buy" rating. Access consensus analyst forecasts for NVIDIA Corporation via Analyst Forecasts. Analyzing these ratings provides context for market sentiment.

Valuation & Fundamentals

Let's look at some key fundamental ratios for NVIDIA ($NVDA):

• P/E Ratio: 40.17
• Forward P/E Ratio: 25.72
• PEG Ratio: 0.27
• P/S Ratio: 22.28
• P/B Ratio: 36.66
• Gross Profit Margin: 74.99%
• Net Profit Margin: 55.85%

NVIDIA ($NVDA) trades at high price-to-earnings and price-to-sales multiples, suggesting a premium valuation compared to many companies. However, the very low PEG ratios (both trailing and forward) indicate that the market expects strong future growth to justify this price. The company also boasts exceptionally high profit margins, demonstrating strong profitability. Analyzing these metrics is key to understanding the NVIDIA ($NVDA) story. Access comprehensive fundamental data for NVIDIA Corporation via Financials.

Cash Flow & Balance Sheet

A look at the company's financial health:

• Operating Cash Flow (TTM): $64.09 billion
• Free Cash Flow (TTM): $60.85 billion
• Cash & Equivalents: $8.59 billion
• Current Ratio: 4.44 (Strong liquidity)
• Debt/Equity Ratio: 0.13 (Low leverage)

NVIDIA ($NVDA) generates substantial operating and free cash flow, indicating that its core business is highly efficient at converting revenue into cash. The strong current ratio suggests ample short-term liquidity, and the low debt-to-equity ratio points to a conservative capital structure with minimal reliance on debt. Analyzing cash flow and the balance sheet provides insight into NVIDIA's ($NVDA) financial stability.

Risks & Considerations

While the outlook is largely positive, it's important to consider potential risks:

• Stock-Based Compensation: Stock-based comp is about 3.63% of revenue, which can impact earnings per share.
• Valuation Sensitivity: With high valuation multiples, the stock price could be sensitive to any miss on earnings expectations or a slowdown in growth projections. Analyzing the stock's reaction to past reports is useful here.
• Technical Overbought Risk: Some technical indicators like StochRSI suggest the stock may be technically overbought in the very short term, potentially leading to a pullback.
• 30-Day VaR: The 30-day Value at Risk is -33.0%, indicating significant potential volatility.

Conclusion & Bottom Line

Bottom Line: Analysts are forecasting robust growth for NVIDIA ($NVDA) this quarter, reflected in the high expected revenue and EPS figures. The company's fundamentals show strong profitability, cash generation, and a healthy balance sheet. While the valuation is premium, it appears supported by strong growth expectations as indicated by the low PEG ratio. Technical indicators show strong recent momentum but also suggest a potential for a short-term pullback. Options activity leans bullish, and short interest is low. The primary risk appears to be valuation sensitivity to execution and potential short-term technical pullbacks, offset by significant analyst optimism and fundamental strength. Analyzing all these factors provides a comprehensive picture for NVIDIA ($NVDA) investors ahead of the earnings report.

Happy Investing!