NVIDIA Poised for Growth as Earnings Surge Ahead of Fourth Quarter
With a market capitalization of an impressive $3.4 trillion, NVIDIA Corporation (NVDA) is the world’s largest semiconductor company. Based in Santa Clara, California, NVIDIA has made a name for itself with groundbreaking innovations in accelerated computing. The company’s creation of the GPU not only transformed the PC gaming landscape but also played a crucial role in initiating the modern AI era and the development of the metaverse. Over the years, it has evolved into a full-stack computing enterprise, significantly impacting various global industries.
NVIDIA is set to unveil its fourth-quarter results on Wednesday, February 19. Analysts predict that the company will report a profit of $0.79 per share, marking a notable 61.2% increase from the $0.49 recorded during the same quarter last year. Notably, NVIDIA has outperformed Wall Street’s earnings expectations for four consecutive quarters. In the most recent quarter, its EPS experienced a remarkable year-over-year growth of 110.8%, reaching $0.78, which exceeded analysts’ forecasts by 11.4%.
For the full fiscal year 2025, NVIDIA is anticipated to deliver an EPS of $2.78, showing a significant 135.6% increase from the $1.18 reported for fiscal 2024. Furthermore, earnings in fiscal 2026 are projected to grow by 43.2% year-over-year, reaching $3.98 per share.
NVIDIA’s stock price has soared 136.7% over the past year, far surpassing the S&P 500 Index’s ($SPX) 25% gain and the Technology Select Sector SPDR Fund’s (XLK) 17.9% returns in the same period.
The rising demand for semiconductor chips—driven by broad AI advancements—has fueled NVIDIA’s robust revenue growth. Following the release of its impressive Q3 results on November 20, NVDA stock saw a modest uptick in trading. The company reported record quarterly Data Center revenue of $30.8 billion, which represents a whopping 112% increase from the same quarter last year. Total revenues surged to a record $35.1 billion, reflecting a year-over-year increase of 93.6%. Even with significant rises in R&D spending, NVIDIA achieved a 108.9% year-over-year growth in net income, amounting to $19.3 billion.
NVIDIA expects this momentum to continue in the upcoming quarters, providing a midpoint revenue guidance of $37.5 billion for Q4, indicating robust quarter-on-quarter growth of 6.8%.
Analysts remain optimistic about NVIDIA’s future. The consensus rating for NVDA is “Strong Buy.” Out of 43 analysts covering the stock, 36 recommend “Strong Buy,” three suggest “Moderate Buy,” and four recommend a “Hold” rating. The mean price target of $176.55 reflects a potential upside of 25.4% from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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