The launch of generative artificial intelligence (AI) application ChatGPT whipped Wall Street into a frenzy in late 2022. While the generative AI revolution is still in its early stages, chipmaker Nvidia (NASDAQ: NVDA) has already been a big winner.
Nvidia was the best-performing stock in the S&P 500 last year, primarily because interest in AI drove unprecedented demand for its graphics processing units (GPUs). Shares have now advanced 510% since the beginning of 2023, but there’s a possible inflection point on the horizon.
Nvidia will announce first-quarter financial results after market close on Wednesday, May 22, at 5 p.m. ET. For context, the stock surged 16% following its exceptional fourth-quarter financial report, and shareholders are undoubtedly hoping for an encore performance. However, Wall Street analysts have particularly high expectations this time around.
Should you buy Nvidia stock before May 22?
Nvidia impressed Wall Street with triple-digit growth in the fourth quarter
Nvidia crushed expectations with its fourth-quarter financial report. Revenue increased 265% to $22.1 billion on particularly strong momentum in the data center product category, due in large part to demand for artificial intelligence systems and software. And non-GAAP net income soared 491% to $12.8 billion.
The chart below shows Nvidia’s fourth-quarter revenue growth across its four primary product categories.
The chart above shows Nvidia’s fourth-quarter revenue growth (year over year) across its four primary product categories. The fiscal fourth quarter ended Jan. 28, 2024.
On the earnings call, CEO Jensen Huang attributed strong fourth-quarter results to two platform shifts. Data centers are moving from general purpose to accelerated computing and evolving into generative AI factories that turn massive amounts of raw information into digital intelligence. “Nvidia AI supercomputers are essentially AI generation factories of this industrial revolution,” Huang told analysts.
Glancing back, Nvidia has now achieved triple-digit revenue and non-GAAP net income growth for three…
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