Nvidia, a leading chipmaker, is set to achieve a new record high as it prepares to release its first-quarter earnings report. On Thursday morning, the company’s shares reached $953.83, a 0.8% increase from their previous closing price. This surge in stock price follows Nvidia’s previous record high close price of $950.02 on March 25, marking the highest price ever recorded for the company.
According to a survey conducted by FactSet, Wall Street analysts have already established their expectations for Nvidia’s first-quarter revenue at $24.5 billion. However, equities research analyst John Vinh from KeyBanc anticipates that Nvidia will report sales for the first quarter of $26 billion. Additionally, Nvidia has provided guidance for the second quarter, expecting revenue to be around $28.5 billion. This increase in revenue guidance suggests strong growth prospects for the company.
Vinh’s research note emphasizes that despite the anticipation of next-generation Blackwell GPUs in the second half of the year, there are no signs of a market slowdown. Vinh expects Nvidia to announce first-quarter results and second-quarter guidance that exceed expectations.
Furthermore, Nvidia’s CEO, Jensen Huang, stands to benefit from the record-high share price. A proxy statement reveals that Huang received $34.2 million in total remuneration for the fiscal year 2024, a significant increase of sixty percent compared to the previous year. This increase is primarily driven by stock awards, as Huang’s basic income has remained just below one million dollars for the past three years.
Nvidia’s stock has experienced remarkable growth this year, with over 99% gains so far. This surge began after the company’s fourth-quarter earnings announcement in February, where they reported revenue of $22 billion, a substantial increase of over 270% compared to the previous year. The stock has since rebounded from a decline prior to the earnings presentation, achieving a remarkable 226% increase over the past year.
In conclusion, Nvidia’s upcoming earnings report and strong performance in the stock market indicate a prosperous future for the company. With anticipated record-breaking revenue and positive market sentiment, Nvidia continues to solidify its position as a leader in the tech industry.
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