NVIDIA (NASDAQ:NVDA), which has appeared as a powerhouse within the semiconductor space, is scheduled to report 1Q22 (ending January) results after the close on Wednesday with a conference call following at 5:00 p.m. E.T.
The company has been on an absolute tear over the past year, decimating analysts’ earnings and revenue expectations along the way. More of the same is expected tonight, as evidenced by the stock’s ~10% run higher over the past week.
Back on April 12, the leading GPU maker reported that Q1 revenue is tracking above the $5.30 bln outlook it provided during the Q4 earnings conference call. CFO Colette Kress added that the outperformance is being fueled by strength across each of the company’s segments and that demand is expected to surpass supply for most of the year.
Since that update, analysts’ expectations have edged higher to $5.4 bln from $5.2 bln. On the bottom line, NVDA is estimated to generate EPS of $3.28. With each passing quarter, NVDA has one-upped itself in terms of surpassing consensus estimates. Last quarter, the company smashed the EPS estimate by $1.12, following beats of $0.99 and $0.50 in the two foregoing quarters.
The story on the top-line is very similar as growth has accelerated from the upper-30% range in 1Q21 to over 60% in 4Q21, resulting in considerable upside performance.
There are a few catalysts underlying NVDA’s rise, but the evolution of artificial intelligence (AI) and the company’s solid technological position within AI is at the core of its success. This is especially true in the data center market as the infusion of AI technologies across cloud computing providers has created a windfall for the company.
Last quarter, NVDA’s Data Center (DC) segment posted growth of 97%, which actually represented a slowdown from Q3’s 162% leap.
