Nvidia stock just hit an all-time high with earnings around the corner

Nvidia CEO Jensen Huang during the GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.Photo: Justin Sullivan (Getty Images)

Nvidia’s hot streak is continuing as the chipmaker’s stock barrels toward a record high ahead of first quarter earnings next week. The chipmaker’s shares were up 0.8% in Thursday morning trading, to $953.83. Nvidia’s previous record high was $950.02, which it hit on March 25.

Why Nvidia needs to deliver on Q1 earnings

Ahead of Nvidia’s first quarter earnings report next Wednesday, Wall Street is setting its expectations for the company’s first quarter revenue at $24.5 billion, according to a FactSet poll of analysts’ estimates. However, KeyBanc equity research analyst John Vinh said Nvidia is likely to report first quarter revenue of $26 billion, and set its second quarter guidance to around $28.5 billion.

“Despite anticipation of next-generation Blackwell GPUs [graphics-processing units] in the second half, we see limited signs of a demand pause and expect Nvidia to report first-quarter results and second-quarter guidance meaningfully above expectations,” Vinh wrote in a research note on Tuesday.

A record-high share price would also be a boost for Nvidia chief executive Jensen Huang, who earned $34.2 million in total compensation for fiscal year 2024 — a 60% jump from his total compensation of $21.4 million in fiscal year 2023, according to a proxy statement released Tuesday. Stock awards played a large part in Huang’s compensation boost, as his base salary has hovered just below $1 million for the past three years. Huang earned $26.7 million in stock awards for fiscal year 2024 — up from $19.7 million in fiscal year 2023.

Nvidia’s stock is up about 99% so far this year, after the company’s shares rallied since it reported fourth quarter earnings in February. The company’s shares took a hit right before earnings, but made a comeback after it reported revenue of $22 billion — up nearly 270% from the previous year. The stock is up a whopping 226% over the last 12 months.

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