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- Nvidia Crushes Q1 Estimates
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Market Moves Yesterday
S&P 500 @ 5,307.01 ( ⬇️ 0.27%)
Nasdaq Composite @ 16,801.54 ( ⬇️ 0.18%)
Bitcoin @ $69,675.40 ( ⬆️ 0.18%)
Hey Scoopers,
Happy Thursday! Here’s what we’re covering today:
👉 Nvidia’s blockbuster earnings
👉 Target disappoints investors
👉 Snowflake is on the move
So, let’s go 🚀
Market Wrap 📉
U.S. equities traded lower on Wednesday as the minutes from the Federal Reserve’s last meeting raised concerns about persistent inflation, indicating the central bank may further delay rate cuts.
However, the Nasdaq-100 futures are trading higher in early market on the back of stellar Q1 earnings from market bellwether Nvidia.
The chipmaker’s numbers are extremely crucial to the broader earnings picture. For instance, S&P 500 earnings are on pace to expand by 7.6% this season, with Nvidia accounting for a third of the index’s earnings growth.
While Apple and Microsoft are the two largest holdings in the S&P 500 index, no company will have a higher impact on overall earnings than Nvidia due to the latter’s huge market cap and outlandish earnings growth.
Last time, the Nasdaq index rose 2% following Nvidia’s earnings beat. Today, it is up 0.9% in pre-market.
Trending Stocks 🔥
Analog Devices - The semiconductor stock popped almost 11% after it reported revenue of $2.16 billion and earnings of $1.40 per share in fiscal Q2, compared to estimates of $2.11 billion and $1.26 per share, respectively.
Shopify- Shares climbed 3% following an upgrade to “buy” from Goldman Sachs as the investment bank believes the e-commerce company is undervalued.
VF Corp - The stock is down over 14% in pre-market after the apparel and footwear company posted an unexpected loss in the recent quarter.
Nvidia Reports Q1 Results
Nvidia shares topped $1,000 for the first time in extended trading as they are up 7% on the back of stellar Q1 results. In fiscal Q1 of 2025 (ended in January), Nvidia reported:
👉 Revenue of $26.04 billion vs. estimates of $24.65 billion
👉 Earnings per share of $6.12 vs. estimates of $5.59
In the year-ago period, Nvidia reported revenue of $6.52 billion and adjusted earnings of $0.98 per share.
The company’s quarterly earnings provide investors with insights to gauge the strength of the AI boom that has dominated market conversations in the last 18 months. Its strong Q1 numbers suggest demand for AI chips is quite robust. Moreover, Nvidia forecast sales of $28 billion in Q2, ahead of estimates of $26.6 billion.
Since the start of 2023, big tech companies, including Google, Microsoft, Meta, and Amazon, have purchased billions of dollars of Nvidia’s graphics processing units, which are chips required to develop and deploy AI-powered applications.
Nvidia stated revenue from its data center business rose 427% year over year to $22.6 billion. This business includes AI chips and other products required to run large AI servers.
Nvidia also announced a 10-for-1 stock split, which will be completed next month. A stock split does nothing to change a company’s fundamentals, but it does have a psychological impact on retail investors.
Target Tanks Over 8%
Shares of big-box retailer Target fell over 8% following its quarterly results. In the April quarter, Target reported:
👉 Revenue of $24.53 billion vs. estimates of $24.52 billion
👉 Earnings per share of $2.03 vs. estimates of $2.06
It was the first time since November 2022 that Target missed earnings estimates. Here are some key numbers for the retail giant in fiscal Q1 of 2025:
Customer traffic and customer spending fell by 1.9%
Digital sales grew by 1.4%, the first increase in more than a year
Comparable sales tumbled 1.7% as purchases across discretionary categories such as apparel declined
Categories such as food and beverage, beauty, and household essentials declined by low single-digits
Snowflake Stock is On the Move
Snowflake stock is up 4% in pre-market after the company announced its fiscal Q1 results and reported:
👉 Revenue of $828.7 million vs. estimates of $786 million
👉 Earnings per share of $0.14 per share vs. estimates of $0.18
The cloud-based data analytics company ended Q1 with a net retention rate of 128%, which means existing customers increased spending by 28% in the last 12 months.
Around 485 customers have spent more than $1 million on the Snowflake platform in the last year, while its remaining performance obligations rose by 46% to $5 billion.
Unlike several other growth stocks, Snowflake reports a positive free cash flow, which grew 44% to $366 million in Q1, indicating a healthy margin of 44%.
Headlines You Can't Miss!
China’s SMIC is the third-largest foundry in the world
Snowflake might collaborate with Nvidia
Amazon plans to give Alexa an AI overhaul
China can’t be ignored, says JPMorgan
SEC is in talks with Ethereum ETF issuers
Chart of The Day
Source: Visual Capitalist
Last week, the U.S. introduced a new set of tariff increases on Chinese imports, amounting to $18 billion worth of goods. President Biden stated the tariffs aimed to counter China’s unfair trade practices.
The tariff hikes were directed at imports such as semiconductors, electric vehicles, and lithium-ion batteries, among others.
The tariffs were introduced under Section 301, which allows the U.S. government to “investigate and respond to unfair trade practices by foreign countries.”
Meme of the Day
The World If Nvidia Missed Its Earnings
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.