NVIDIA stocks rise amid expectations for release of results for Q1 of 2025

NVIDIA (NVDA) stocks are gaining momentum ahead of the company's Q1 2025 earnings report release, scheduled for Wednesday evening. Despite restrictions on H20 chip shipments to China and an anticipated $5.5 billion write-down due to new export regulations, the stock remains attractive, buoyed by strong demand for Blackwell products and major contracts with international partners.

The robust demand for AI solutions, which is expected to be reflected in the quarterly revenue figures, continues to be the key factor for NVIDIA growth. Analysts estimate total revenue will reach $43.3 billion, with data center sales hitting $39.2 billion—a 74% year-over-year increase.

NVIDIA is further solidifying its market position through strategic partnerships and an expanding client base. Recently, the company announced plans to supply hundreds of thousands of GPUs to Saudi Arabia for the Humain project, backed by the kingdom’s sovereign wealth fund. This deal aligns with Saudi Arabia’s efforts to establish itself as a global AI hub. Such agreements not only offset losses from China’s market restrictions but also unlock new growth opportunities.

Meanwhile, competition in the AI chip sector is intensifying. Chinese firms such as Huawei are actively developing in-house solutions that could rival NVIDIA’s previous-generation products. This adds pressure, particularly as access to one of the largest markets tightens. However, analysts believe NVIDIA’s technological edge will persist for at least the next 12–18 months.

Technical analysis indicates an uptrend. Quotes are above EMA (20) and EMA (50), demonstrating positive dynamics. The RSI index is at 78, which signals the proximity to the overbought zone, but does not portend an immediate reversal. According to options traders, the stock could see a 7.4% move post-earnings.

Current recommendation: 

Buying at the current price with expectation of positive results for the first quarter. Take profit - 144.50. Stop loss - 128.00.

Investors should pay attention to the market reaction after the report publication, as any deviations from the forecasted values can significantly affect the dynamics of the shares.