Will Nvidia's Q1 results test the market's strength?

Tech giant Nvidia (NVDA) is set to report its first quarter earnings next week. Many are paying close attention, given the chipmaker's status as a leader of the last market rally. The company's shares are up over 95% year to date, but can the chip giant deliver on lofty expectations?

Yahoo Finance Head of News Myles Udland join Catalysts to break down what investors need to keep in mind for Nvidia's upcoming earnings.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino

Video transcript

Investors are looking ahead to NVIDIA results next week which could drive more momentum in the current market.

Rally shares of video have significantly outperformed the rest of the market for the last year.

They are up a whopping 96% year to date.

The big question though, can the chip making powerhouse deliver on lofty expectations?

Joining us now on this is our very own miles miles.

Thank you as always for being here.

I mean, can they, can they pull it off?

Who knows?

I love to find out.

I think that, you know, in the context of what Brian was just talking about with respect to the overall market rally right now, the shape of that rally, the drivers of that rally in videos report that everyone's been eyeing for quite a long time and obviously the the price structure around it, how investors expect this to, you know, factor into the overall situation that doesn't change too much.

It's still a high volatility event, both for the company and I think overall, but the context in which they are reporting has changed quite a bit over the last month in that there's now much more enthusiasm from investors around what the earnings picture is going to look like, not just in this quarter, but over the balance of the year, you know, as Brian was discussing the fundamental idea, like the idea, there will be a fundamental reason to see a, you know, 910 15% pull back this year has really faded in investors minds.

So I will be curious to see if NVIDIA becomes a much more specific A I trade and like, how could it be more specifically A I?

But I mean, it, in the sense of all those Pullbacks we saw at the beginning of earning season, the Ts MS of the world, does that come back for NVIDIA?

But does the market kind of move on anyway, I guess, put it even more plainly for the viewers just how significant this one report really is for the market when you're talking about these growth rates that we've seen at NVIDIA also just how unusual it is.

And we pointed this out in our morning brief here this morning at Yahoo Finance Lee Hyman wrote it.

But when you talk about how unusual it is for this type of growth to continue when you got a company at this size.

Yeah, it gets back to a conversation that sort of picked up at the end of last year, which was, are we sure that the semiconductor industry is no longer a cyclical business?

Because it has long been a heavily cyclical business.

And that meaning there are times at which you see order growth 100% plus, I mean, NVIDIA has seen revenue grow, um and and earnings grow much more aggressively than that over the last several quarters.

Um And then there's a time when you start to see a pullback, we've had a lot of cap X from the biggest tech companies already outlined.

Those are going to be many of Nvidia's customers.

So analysts can do the math on what that implies in terms of the growth rate for the company.

But we're really talking about what's 2026 look like for NVIDIA.

What does 2028 look like for NVIDIA?

And how much has that story changed?

And you know, to Julie's Point, you don't typically see again in whether it's a company of this size in video, obviously, you know, many trillions of market cap, you know, two trillion market cap at this point.

Um not only companies of that size but industries in which there is such a cyclical component to it.

Um growth rates like that continue indefinitely.

All right.

Well, it's clearly a story we will be covering very closely here.

You by miles.

Amazing.

Thanks so much.