Nvidia Set for Major Growth in 2024 Amid Strong Financial Performance

The company’s GAAP and non-GAAP earnings per diluted share also saw notable quarter-over-quarter and year-over-year increases. This remarkable growth is primarily attributed to NVIDIA‘s strategic emphasis on AI and accelerated computing through its Hopper platform, which has seen soaring demand across consumer internet, automotive, healthcare, and sovereign AI markets.

Moreover, the introduction of Blackwell for generative AI and Spectrum-X for AI in Ethernet-only data centers positions Nvidia for continued success, reinforcing its leadership in the market and boosting investor confidence. This article presents the financial performance and technical evaluation of Nvidia to find the next direction of the stock price and find investment opportunities. It is observed that the stock price is trading within the ascending broadening wedge and shows strong price volatility with bullish price patterns.

Overview of Financial Performance

Nvidia has reported strong financial performance for Q1 2025, with revenue hitting $26.0 billion which shows 18% increase from Q4 2024 and a 262% increase from Q1 2024. GAAP earnings per diluted share also surged to $5.98, marking a 21% quarter-over-quarter growth and 629% year-over-year increase. Meanwhile, non-GAAP earnings per diluted share were $6.12, reflecting a 19% increase from Q4 2024 and a 461% jump from Q1 2024.

This exceptional growth is primarily attributed to NVIDIA’s strategic focus on AI and accelerated computing, mainly through its Hopper platform, which has seen soaring demand across various sectors, including consumer internet, automotive, healthcare, and sovereign AI markets. The chart below shows a strong revenue and net income trend for NVIDIA, indicating a strong profitability potential for the company.

The financial performance and strategic moves, including a ten-for-one forward stock split and a substantial 150% increase in its quarterly cash dividend, will likely impact NVIDIA’s stock price significantly. The stock split aims to make ownership more accessible, potentially attracting a broader base of retail investors and increasing liquidity.

The dividend increase underscores NVIDIA’s confidence in its ongoing profitability and commitment to returning value to shareholders. With the introduction of new platforms like Blackwell for generative AI and Spectrum-X for AI in Ethernet-only data centers, Nvidia is well-positioned for continued growth. These developments and the company’s robust financial results are expected to bolster investor confidence, potentially driving the stock price higher in the near term.

Key Segments and Catalysts Fuel NVIDIA’s Expansion

NVIDIA’s strong financial performance in Q1 2025 is attributed to several key catalysts across its diverse business segments. The chart below shows that the largest segment of Nvidia is Data Center which registered a record $22.6 billion in revenue, a 23% increase from Q4 2024 and 427% from Q1 2024, and plays a pivotal role in NVDIA’s growth. This growth was fueled by the unveiling the Nvidia Blackwell platform and the Blackwell-powered DGX SuperPOD™ for generative AI supercomputing, designed to support trillion-parameter AI models.

Additionally, NVIDIA’s introduction of the Quantum and Spectrum™ X800 series switches for AI infrastructure and the launch of Nvidia AI Enterprise 5.0, accelerating enterprise app development, further strengthened its Data Center offerings. The company’s strategic collaborations with industry giants like AWS, Google Cloud, Microsoft, and Oracle, and advancements in semiconductor manufacturing through Nvidia cuLitho, contributed significantly to this segment’s remarkable performance.

Another contributing factor to NVIDIA’s success in Q1 2025 was its Gaming and AI PC segment, which reported $2.6 billion in revenue, up 18% from Q1 2024 despite an 8% decline from Q4 2024. NVIDIA’s introduction of ACE and Neural Graphics and performance optimizations for Windows on GeForce RTX AI PCs have enhanced the gaming experience and driven demand.

The announcement of major games incorporating RTX technology and support for new AI models like Google’s Gemma for ChatRTX highlights NVIDIA’s continuous innovation in gaming and AI PC technologies, which appeal to gamers and developers. This innovation ensures sustained engagement and revenue growth in Gaming & AI PC segment.

Moreover, Nvidia is expected to maintain strong financial performance due to robust pipeline of advanced technologies and strategic initiatives. The Blackwell platform positions Nvidia at the forefront of generative AI, while Spectrum-X opens new markets for large-scale AI deployments in Ethernet-only data centers.

Additionally, the continued expansion in automotive and robotics, with next-generation platforms like Nvidia DRIVE Thor™ and the Project GR00T foundation model for humanoid robots, highlights NVIDIA’s broadening influence across multiple industries. These innovations, combined with strategic partnerships and a clear focus on AI and accelerated computing presents NVIDIA’s potential for sustained growth and market leadership in the coming quarters.

The company also expects revenue of $28.0 billion for Q2 2025, reflecting strong demand across its key segments. On the other hand, gross margins are expected to be above 74%, with full-year margins in the mid-70% range. This indicates efficient cost management and high profitability. Operating expenses are projected to be around $4.0 billion (GAAP) and $2.8 billion (non-GAAP), with full-year expenses expected to grow in the low-40% range.

Overall, NVIDIA’s strong financial performance in Q1 2025 highlights its strategic focus on AI and accelerated computing, particularly within its Data Center and Gaming & AI PC segments. The introduction of advanced platforms and strategic collaborations has positioned Nvidia for continued success across multiple industries. With a robust pipeline of innovative technologies and an optimistic revenue forecast for Q2 2025, Nvidia is well-poised for sustained growth and market leadership.

Bullish Technical Outlook Driven by AI Advancements and Strategic Growth

The technical outlook for Nvidia is also strongly bullish, as seen in the monthly chart below. The chart reveals a robust bullish trend over the past 15 years, with a significant price rally initiated from October 2022 low of $108.05 which shows considerable price volatility. This volatility is illustrated by the monthly candles showing strong price increases over recent months. The stock has surged over 970% from the October 2022 lows to recent highs. Additionally, price momentum is increasing, suggesting the potential for even higher prices amid this heavy volatility.

This remarkable price increase is driven by significant advancements in AI and accelerated computing, including the introduction of the Nvidia Blackwell platform and substantial growth in the Data Center segment, positioning Nvidia at the forefront of the AI revolution. Record-breaking financial performance and substantial year-over-year revenue and earnings growth have further bolstered investor confidence.

Moreover, strategic partnerships with major tech firms and expansion into high-growth areas such as generative AI, automotive, and robotics have created multiple new revenue streams. The announcement of a ten-for-one stock split and increased dividend payouts has also made the stock more attractive to a broader base of investors, enhancing its market appeal and liquidity.

The Next Price Target for NVIDIA

Based on the above explanation, it is evident that Nvidia is in a clear uptrend and poised for further advancement. The log weekly chart shows the price moving within an ascending broadening pattern, indicating positive momentum. The October 2022 low at $108.05 formed an inverted head and shoulders pattern, with the head at $108.05 and shoulders at $140.40 and $138.77, respectively. This pattern broke out at the neckline of $186, triggering a strong price surge.

Additionally, the price consolidation in Q4 2023 indicated price compression, suggesting an imminent price explosion. Given these strong bullish patterns and the resistance of the ascending broadening wedge not yet reached, the price will likely continue its upward momentum toward this resistance level.

The heavy volatility bars on the monthly chart and the bullish price action on the weekly chart confirm that the price remains in a solid bullish trend with potential for further gains. The robust financial performance is expected to support this technical development, allowing prices to continue rising. Investors might consider buying the stock during corrections.

Market Risks

Despite NVIDIA’s outstanding financial performance and growth prospects, the company faces several market risks that could impact its future trajectory. One significant risk is the intense competition in the semiconductor industry, where competitors like AMD, Intel, and emerging players continuously innovate to capture market share. NVIDIA’s reliance on cutting-edge technology means that any delays or shortcomings in product development could allow competitors to gain an advantage.

Furthermore, the rapid pace of technological advancement necessitates substantial R&D investment, and there is no guarantee that these investments will always yield successful outcomes. Additionally, geopolitical tensions and trade restrictions, particularly involving key markets like China, could disrupt supply chains and limit market access, posing a significant threat to NVIDIA’s growth and profitability.

Another market risk is the potential volatility in the demand for AI and accelerated computing solutions. While the current demand for these technologies is robust, driven by consumer internet, automotive, and healthcare sectors, market conditions can change rapidly. Economic downturns, changes in industry priorities, or shifts in regulatory landscapes could dampen demand. NVIDIA’s recent stock split and increased dividend reflect confidence in sustained growth and raise expectations among investors.

If Nvidia fails to meet these heightened expectations, it could result in significant stock price volatility. Moreover, the company’s expansion into new markets like AI-driven data centers and generative AI poses execution risks, as these ventures require precise strategic planning and flawless implementation to achieve the anticipated financial benefits.

Bottom Line

NVIDIA’s outstanding financial performance in Q1 2025 presents a strategic emphasis on AI and accelerated computing, driving substantial revenue and earnings growth. The company’s focus on advanced platforms like Hopper and the introduction of Blackwell for generative AI, along with Spectrum-X for Ethernet-only data centers, have met with increasing demand across various sectors.

Strategic collaborations with industry giants and innovations in gaming and AI technologies reinforce this growth trajectory. The significant rise in earnings per share highlights NVIDIA’s robust market position and investor confidence, further supported by the company’s forward stock split and increased dividend.

From a technical perspective, the stock price is trading within ascending broadening wedge patterns and formed price compression in the last quarter of 2023. The price explosion after the compression and the historical pattern development indicate that prices are poised for sustained growth in the near future. The target of the ascending broadening wedge is far from current levels, suggesting that prices are expected to continue higher. Investors can consider buying Nvidia during corrections.

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