SANTA CLARA, Calif. – Nvidia, a leading chip giant, is set to release its Q4 Fiscal 2024 financial results on February 21st. Analysts are optimistic about the company’s performance, citing strong demand for its products in the AI sector, particularly in its Data Center business. Most analysts have raised their price targets on Nvidia stock ahead of the Q4 earnings report, with one analyst noting the company as the best AI/ML play.
The growth in Nvidia’s Q4 revenues is expected to more than triple, with analysts projecting revenue of $20.37 billion compared to $6.05 billion in the prior-year quarter. This surge in revenue is attributed to the ongoing momentum in the Data Center business and the continued ramp of the NVIDIA HGX platform, which serves as the reference architecture for AI supercomputers and data center infrastructures.
With increased sales and operating leverage, analysts anticipate Nvidia’s bottom line to also show a significant jump in Q4, with expected earnings of $4.59 per share, representing a 422% increase year-over-year. The consensus rating for Nvidia is a Buy, with 37 Buys and three Holds, indicating a Strong Buy consensus rating. However, with the stock already up 47% year-to-date and 252% in one year, analysts see a limited upside potential of 2.86% based on the average price target for Nvidia stock.
Options traders are pricing in a +/- 11.14% move in Nvidia stock on earnings, higher than the previous quarter’s earnings-related move of -2.46%. This anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Nvidia is poised to deliver strong fourth-quarter results, driven by AI-driven demand in the Data Center business. However, the recent rally in its shares suggests that much of the positive news may already be reflected in its current market price.