NVIDIA Stock Relentlessly Keeps Powering Ahead (NVDA)

The graphics chip maker blows past earnings view. Surges eleven points.

Wall Street

NVIDIA Corporation (NASDAQ:NVDA) rallied $10.48, or 15.44%, to $78.31 in extended hours trading after it reported 2017 fiscal-third quarter earnings.

The graphics chip pioneer handed in earnings of $0.94 per share on revenue of $2.00 billion, up 54 percent from a year ago, beating Wall Street estimates of $0.68 per share on revenue of $1.69 billion. Net income came in at $542 million, or $0.83 per share from $246 million, or $0.44 per share, a year earlier. Gross profit margin, on a non-GAAP basis, was 59.2%, up from 56.5% on a y/y basis.

Meanwhile, revenue from the “datacenter” business, including categories such as Artificial Intelligence, grew to $240 million, up 193% from the previous year. Its automotive business grew 61% year-over-year (y/y) to $127 million. Its video game segment, the biggest of all, saw revenue surge by a whopping 63%, y/y, to $1.24 billion. The company said its bottom line hit $570 million, 125% higher than in last year’s third quarter.

“We had a breakout quarter — record revenue, record margins and record earnings were driven by strength across all product lines,” said Nvidia CEO and cofounder Jen-Hsun Huang, in a statement. “Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing.

“We have invested years of work and billions of dollars to advance deep learning,” Huang continued. “Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing.”

Looking ahead, Nvidia guided Q417 revenues of $2.1 billion, as compared to analysts’ expectations of $1.69 billion. The company also said it expects to return $1.25 billion to shareholders through dividends and share repurchases.

NVIDIA Stock Action:

In the past 52 weeks, shares of the Santa Clara, Calif.-based chipmaker have traded between a low of $24.75 and a high of $72.95 with the name’s 50-day moving average (MA) and 200-day MA located at $67.93 and $55.41 levels, respectively.

NVDA currently prints a one year return of about 130%, and a year-to-date return of around 114%.

The median Wall Street price target on the name is $69.50 with a high target of $90.00. Currently ticker boasts 15 ‘Buy’ endorsements, compared to 13 ‘Holds’ and 3 ‘Sell’.

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