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Nvidia's Earnings Estimates and Revenue Growth Impress Investors

Nvidia stock attracts attention with a Zacks Rank #2 (Buy). The company's earnings estimates have seen positive revisions, and revenue growth is forecasted at +66% year-over-year this quarter. Investors may consider these factors when evaluating stock performance.

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AI Rating:   7

Nvidia's Performance Highlights

Nvidia is currently under close observation by investors, primarily due to its recent performance where shares have returned -14.6%, a decline greater than the Zacks S&P 500 composite's -9.6% and the industry's -13.6%. Despite this short-term drop, Nvidia shows strong potential based on fundamental indicators.

Earnings Per Share (EPS)

The current quarter's estimated earnings for Nvidia stands at $0.92 per share, reflecting a significant growth of +50.8% year-over-year. The Zacks Consensus Estimate for the current fiscal year is $4.39, indicating a +46.8% increase compared to the previous year, alongside an anticipated EPS of $5.46 for the next fiscal year which showcases a change of +24.3%.

Revenue Growth

Nvidia's current quarter revenue is estimated at $43.23 billion, which is impressive with a year-over-year growth projection of +66%. Revenue for the current fiscal year is expected to reach $196.96 billion (+50.9%), and $240.87 billion for the next fiscal year (+22.3%). This sustained revenue growth is crucial as it underlines the company's ability to increase earnings over time.

Last Reported Results

In the last quarter, Nvidia reported revenues of $39.33 billion, representing a +77.9% year-over-year change which surpassed the consensus revenue estimates by +4.26%. The earnings per share of $0.89 also represents a significant increase from $0.52 year-over-year, highlighting the company's positive trajectory in both revenue and earnings.

Conclusion

Nvidia's Zacks Rank #2 suggests a potential for outperforming the broader market based on the positive changes in earnings estimates and significant revenue projections. Investors may find these indicators crucial for deciding on their investment in Nvidia. The strong correlation between earnings estimate revisions and stock performance makes Nvidia a stock to watch in the coming period.

Stocks:  NVDA