To The Moon

🌟🌟🌟Nvidia $NVIDIA(NVDA)$ is perhaps the most important earnings report of the season and it has once again delivered a beat on its headline metrics, even though it came up short in a key segment. Nvidia Q1 25 results Nvidia reported USD 44.1 billion in revenue for the fiscal first quarter. This is up 69% from previous year and above Wall Street expectations for USD 43.3 billion according to FactSet. Nvidia also reported adjusted earnings of 81 cents per share, which was above the consensus opinion of 73 cents. However Data center revenue fell short as revenue was USD 39.1 billion which was below expectations for USD 39.4 billion. Nvidia reported Q1 gross margin of 61% which is down from 73.5% in the previous quarter and well below the 78.9% posted in the same period last year. Gross margin still fell to 71.3% even when excluding charges related to the H20 charge which Nvidia booked after the US export ban on the chips to China. Nvidia's Revenue Outlook Nvidia provided a revenue outlook for the fiscal second quarter that was on the downbeat side. This is due to the US trade war with China playing a role. Nvidia expects revenue to be USD 45 billion while the current FactSet consensus of USD 45.92 billion is 2% above. The outlook includes a loss of USD 8 billion in H20 revenue from export limitations to China. Why is Nvidia Still A Buy After Q1 25 Results? 1. Nvidia Q1 25 earnings report delivered record breaking revenue, reinforcing its dominance in AI computing despite challenges from US export restrictions. 2. Exceptional Revenue Growth - Nvidia posted USD 44.1 billion in Q1 revenue, a 69% year over year surge with USD 39.1 billion coming from its AI powered data center segment. This explosive growth highlights unwavering demand for its industry leading GPUs. 3. AI Adoption Accelerates - AI is reshaping industries from healthcare, finance and to robotics. Nvidia's chips power many of these applications. CEO Jensen Huang said that AI computing is still in its infancy, suggesting long term expansion opportunities. 4. Resilience Amid Export Restrictions - Nvidia absorbed a USD 4.5 billion charge due to restrictions on H20 chip sales to China. Despite this, growth remains robust. Nvidia is shifting focus to other markets such as the Middle East, Japan and India, ensuring sustained demand for its high performance AI products. 5. Strong Q2 Outlook - Nvidia expects Q2 revenue of USD 45 billion demonstrating confidence in its global AI infrastructure expansion. This is despite anticipated USD 8 billion in losses from restricted H20 sales. 6. Innovation and Future Product Pipeline - Nvidia continues to lead the AI revolution with upcoming releases of next generation GPUs, AI software and new AI cloud solutions. Its diverse technological advancements solidify its position as the backbone of AI computing. Nvidia Target Price Wall Street Analysts are bullish on Nvidia with an Average Target Price of USD 164.21, an upside potential of 21%. This is according to 37 Wall Street Analysts surveyed by Tipranks. Nvidia's Market Cap and Valuation Nvidia has a market cap of USD 3. 21 Trillion, reflecting its massive scale and investor confidence. Valuation Ratios PE ratio of 44.83 trailing / 32.35 forward PEG Ratio 0.92 (suggesting reasonable growth relative to earnings) Price to Sales Ratio is 24.80 Price to Book Ratio is 40.67 These ratios indicate that Nvidia is trading at a premium but its growth potential in AI and data centers may justify the valuation Concluding Thoughts Nvidia's valuation reflects high growth expectations, particularly in AI, Cloud Computing and Data Centers. While premium pricing seems high, its strong financials, innovation and market leadership make it a compelling long term investment for me. @Daily_Discussion @Tiger_comments @TigerStars @CaptainTiger @TigerClub