NVIDIA Stock Analysis After Earnings as OpenAI IPO Nears

Key Insights

• NVIDIA stock price retreated a bit after publishing strong financial results.
• Its revenue jumped to over $81 billion and the management expects its Q2 figure to be $91 billion.
• The company will benefit from the upcoming OpenAI IPO.

NVIDIA stock price pulled back a bit in the extended hours after the blue-chip company published its first-quarter earnings, which showed that its business was firing on all cylinders. NVDA was trading at $220, down slightly from Wednesday’s closing price of $223.

NVIDIA Stock Pulled Back Despite Strong Earnings

As was widely expected, NVIDIA, the biggest company in the world, published strong financial results on Wednesday. Its revenue, profitability, and forward guidance were better than analysts expected.

The company said that its revenue jumped by 85% in Q1 to $81.6 billion. Market analysts were expecting the number to come in at $79 billion. This revenue was driven by record data center revenue that soared to over $75 billion.

In a statement, Jensen Huang, the CEO, noted that the company was benefiting from the ongoing rollout of data centers globally. It is also gaining from the agentic AI theme, with these tools doing productive work and generating real value.

Most importantly, the company continues to grow its margins, helped by the strong GPU prices. Its operating margin rose to 74.9% from 60.5% in the same period last year. This growth brought its net income to over $58.3 billion, up by 211% YoY.

As a result, the company plans to boost its shareholder returns. It has already repurchased shares worth $20 billion this year, and is now adding $80 billion to the authorization. Also, Huang and the board decided to boost the dividends.

NVIDIA hopes that the growth momentum will continue this year. It expects second-quarter revenue of $91 billion and a gross margin of 74.9% to 75%.

This guidance seems to be highly conservative as the company assumes that it will not sell any GPUs to China this quarter. In reality, chances are that it will start selling these products soon now that the Trump administration has given it a go-ahead to sell. As such, we will not be surprised if its real Q2 revenue jumps to over $96 billion.

OpenAI IPO is Nearing

The other important catalyst for the NVDA stock price is the upcoming IPO season. In addition to the SpaceX IPO, OpenAI is expected to file its papers as early as Friday. Anthropic, which NVIDIA has invested in, is also expected to file its papers later this year.

MNVIDIA took part in the last OpenAI fundraising that brought its valuation to over $800 billion. It invested $30 billion in the company.

Therefore, if OpenAI stock surges, its investment is likely to yield a higher return. It will also help the company raise billions of dollars that it can continue investing in data centers.

NVIDIA has benefited from its recent investments in other companies this year. In addition to OpenAI, it also invested in firms such as Intel, Lumentum, CoreWeave, and Nebius.

There are signs that NVIDIA has become a bargain company. Its results mean that it will likely make over $400 billion in revenue this year, which will bring its operating profit to over $260 billion. This would give it a valuation multiple of 20.

NVIDIA Stock Price Technical Analysis

The daily chart shows that the NVDA stock price has been in a strong rally this year and is now hovering near its all-time high. It has moved above the key resistance level at $212, the upper side of the cup-and-handle pattern.

The stock has constantly remained above all moving averages. Also, it is attempting to retest the upper side of the cup.

Therefore, the most likely NVIDIA stock price forecast is bullish, with the next level to watch being the all-time high of $236. A move above that price will raise the probability of it moving to $300 later this year.

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