NVIDIA (NASDAQ: NVDA) shares closed more than 5% higher on Thursday following the company’s reported Q1 results, with EPS coming in at $1.36, beating the Street estimate of $1.29. Revenue came in at $8.29 billion, compared to the Street estimate of $8.12 billion.
Despite the beat, Q2 revenue guidance significantly missed the Street estimates driven by Russia, China lockdown and Crypto softness impacting primarily Gaming ($400 million) and to a lesser extent Datacenter ($100 million).
Analysts at Deutsche Bank said they remain impressed by the company’s wide array of long-term growth drivers in DC and increasingly in Automotive, however they believe the current uncertainties in Gaming and a rising investor skepticism on the sustainability of sector-wide DC strength will likely remain headwinds to the near-term upside.
The company expects Q2/23 revenue to be $8.1 billion, compared to the consensus of $8.45 billion, and revenue is expected to be $8.10 billion, plus/minus 2%.