NVIDIA reported Q1 fiscal 2025 results on February 26: revenue of $24.9 billion, up 122% year-over-year, with data center revenue alone at $22.6 billion. EPS of $5.98 beat the consensus estimate of $5.57. The stock was up 7% afterhours before giving back roughly half those gains by the open.
The number that matters most is not the beat — at this point the beats are priced in. What matters is the guidance. NVIDIA guided Q2 revenue to $28 billion, plus or minus 2%. That implies the growth rate is not decelerating, which is what bears were betting on. The bottleneck is no longer demand; it is the ability to manufacture H100s and now B100s fast enough. TSMC capacity is the binding constraint, and TSMC is building out aggressively.
Is NVIDIA still investable at these levels? At roughly 35x forward earnings, it is not cheap by traditional standards, but the growth rate justifies the multiple if you believe AI capex spending continues. I own a position I initiated two years ago and have trimmed twice. I am not adding here — the risk/reward on a fresh buy at these levels is asymmetric to the downside if there is any sign of hyperscaler capex softening. My plan: hold the existing position, take profits on another 10% of the holding if we trade through $1,000, and re-evaluate after the next earnings cycle.