Nasdaq NVDA Nvidia

New products expand the Invesco innovation suite

The S&P 500 and the Dow rose on Thursday, helped by economy-linked stocks after data showing fewer weekly jobless claims bolstered optimism about a U.S. economic recovery.

Investors are on the lookout for long term investment opportunities in online betting and gaming, a massively growing industry. However, identifying the best players in the industry and the inherent risks associated with uncertain growth can be daunting. In a recent article, I su

Technology stocks were declining before Thursday's opening bell. The Technology Select Sector SPDR ETF (XLK) was down 0.4% while the Semiconductor Sector Index Fund (SOXX) was down 0.5% recently.

The Dow was set to open slightly higher on Thursday after data showing fewer weekly jobless claims pointed to an improving outlook for the U.S. economy.

U.S. stock index futures ticked lower on Thursday as investors turned to weekly unemployment claims data amid fears that signs of an improving economy would lead the Federal Reserve to start tapering its accommodative monetary policy.

NVIDIA Corporation (NVDA) posted better-than-expected fiscal Q1 results. Strong revenue recorded by the pioneer of GPU-accelerated computing at its Gaming and Data Center platforms mainly drove the results.

NVIDIA reported Q1 adjusted earnings of $3.66 per share, up 103% on a year-over-year basis, and handily beat the Street’s estimates of $3.28 per share. Revenue jumped 84% year-over-year to $5.66 billion and topped analysts’ expectations of $5.41 billion.

Gaming, Data Center, and Professional Visualization platforms recorded 106%, 79%, and 21% year-over-year jumps in revenues. Meanwhile, the Automotive platform recorded a 1% year-over-year decline in revenue. (See NVIDIA stock analysis on TipRanks)

NVIDIA CEO Jensen Huang said, “Mellanox, one year in, has exceeded our expectations and transformed NVIDIA into a data-center-scale computing company."

Huang continued, "From gaming, cloud computing, AI, robotics, self-driving cars, to genomics and computational biology, NVIDIA continues to do impactful work to invent a better future.”

For the second quarter of Fiscal Year 2022, the company projects revenue of $6.3 billion (+/-2%), higher than the consensus estimate of $5.5 billion.

Following the Q1 results, Mizuho Securities analyst Vijay Rakesh increased the stock’s price target to $710 (13% upside potential) from $675 and reiterated a Buy rating.

Rakesh said, “NVDA remains a dominant AI leader with >95% share in GPU training and strong data center and gaming growth, with the continued ramp of its new training and inferencing Ampere architecture driving significant performance.”

NVIDIA shares have exploded 84.2% over the past year, while the stock still scores a Strong Buy consensus rating, based on 16 Buys versus 1 Hold. That’s alongside an average analyst price target of $707, which implies 12.6% upside potential to current levels.

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on NVIDIA, with 5.9% of investors increasing their exposure to NVDA stock over the past 30 days.

Related News:
Moderna Reveals TeenCOVE Study Data of its COVID-19 Vaccine in Adolescents; Shares Gain
Lennox Bumps Up Quarterly Dividend By 19%
Fisker to Use ServiceNow Solutions for EV Product Development

Image source: The Motley Fool.

NVIDIA (NASDAQ: NVDA) reported the results of its fiscal 2022 first quarter (ended May 2, 2021), and the results were remarkable even by historical standards. Revenue of $5.66 billion soared 84% year over year, while its diluted earnings per share (EPS) climbed to a record $3.03,

(RTTNews) - Technology company NVIDIA Corp. (NVDA) on Wednesday reported first-quarter net income of $1.91 billion or $3.03 per share, higher than $917 million or $1.47 per share in the previous-year period. Net income, excluding certain items, was $2.31 billion or $3.66 per

Nvidia Corp forecast second-quarter revenue above analysts' estimates on Wednesday, betting on strong demand for its flagship gaming and artificial intelligence chips for data centers.

Service-providing industries, including IT, management, and healthcare, have seen the biggest job growth in recent years, even during the COVID-19 pandemic, finds new research from ERShares. In a new white paper, “Entrepreneurial Companies Create More Jobs,” the authors investigate which industries have shown the largest increases in job creation, as well as the industries that [...] Read more at ETFtrends.com.

The graphic chip powerhouse is set to report first quarter fiscal 2021 earnings results after Wednesday’s closing bell.

It's been a rough month or so for Bitcoin (CRYPTO: BTC). After skyrocketing to an all-time high in mid-April, the popular cryptocurrency is now down by close to 40%.

NVIDIA Corporation (NVDA) is scheduled to report first-quarter Fiscal 2022 earnings on May 26 after the market closes. Over the past year, shares of the pioneer of GPU-accelerated computing have rallied over 79% and are currently trading at over $625. A strong set of numbers could continue to explode shares, so let’s take a closer look at what analysts on the Street are expecting.

Earnings Preview

NVIDIA is expected to report EPS of $3.28 on revenues of $5.38 billion, while the company guided for revenues of $5.3 billion (+/-2%).

At its annual Investor day in April, NVIDIA’s CFO Colette Kress said, “While our fiscal 2022 first quarter is not yet complete, Q1 total revenue is tracking above the $5.30 billion outlook provided during our fiscal year-end earnings call. We are experiencing broad-based strength, with all our market platforms driving upside to our initial outlook.”

Meanwhile, the Earnings Whisper number, or the Street’s unofficial view on earnings, stands at $3.49 per share.

Prior Period Results

In the previous quarter, the company reported adjusted earnings of $3.10, up 64% from the same quarter last year. That said, the result topped the consensus estimate of $2.81. In addition, revenue jumped 6% to $5 billion and outpaced analysts’ expectations of $4.82 billion. (See NVIDIA stock analysis on TipRanks)

Factors To Watch For

NVIDIA specializes in products and platforms for the growing markets of gaming, professional visualization, data center, and automotive, among which gaming and data center performed stupendously in 2020. NVIDIA RTX is witnessing a major upgrade cycle as gamers are attracted to ray tracing, DLSS, and AI.

Notably, the gaming and data center market platforms have witnessed strong demand due to the pandemic-induced work-from-home and online-learning trend. The increasing adaptation of cloud-based solutions has strengthened the data-center business. Additionally, continued strong uptrend in the A100 universal AI data center graphics processing units (GPUs) across hyperscale customers and vertical industries, for AI training and inference, are likely to have been catalysts during the to-be-reported quarter.

Furthermore, the gaming laptop market has skyrocketed in the past seven years and gaming revenue continues to benefit from a favorable mix shift.  That said, gamers and creators keep upgrading to higher-end GPUs, which are being benefited from the ramp of GeForce RTX 30 Series based on the NVIDIA Ampere architecture. The rising demand for the company’s new processor for crypto miners, known as the CMP, is also likely to be a favorable factor. Therefore, the company is expected to have grabbed a huge market share, the impact of which should be reflected in the to-be-reported quarter’s performance.

NVIDIA’s Professional Visualization and Automotive units recorded sequential growth last quarter, reflecting improved trends. Professional Visualization revenues surged 30% on a rise in demand for desktop workstations as consumers resumed their office posts and organizations recommenced purchases which had been postponed due to the pandemic.

Additionally, revenues at the Automotive segment jumped 16% sequentially during the last quarter of Fiscal 2021, driven by continued recovery in the global automotive production volumes and elevated sales of AI cockpit solutions.

The continuation of such trends is likely to have benefitted the first quarter of Fiscal 2022 as well.

Nevertheless, government-imposed lockdown and social-distancing measures to restrain the spread of coronavirus have disrupted retail channel sales. Therefore, this might have offset the gain from the strong demand for work-and-learn-from-home hardware infrastructure to some extent.

Management Comments

Last month, CFO Colette Kress said, “Within Data Center we have good visibility, and we expect another strong year. Industries are increasingly using AI to improve their products and services. We expect this will lead to increased consumption of our platform through cloud service providers, resulting in more purchases as we go through the year. Our EGX platform has strong momentum, and we expect this will drive increased revenue from enterprise and edge computing deployments in the second half of the year.”

“Overall demand remains very strong and continues to exceed supply while our channel inventories remain quite lean. We expect demand to continue to exceed supply for much of this year. We believe we will have sufficient supply to support sequential growth beyond Q1,” she added.

NVIDIA also lifted the first-quarter revenue estimate for its new CMP product for industrial-scale cryptocurrency mining to $150 million, up from the prior estimate of $50 million.

Recent Developments

Last week, NVIDIA announced a four-for-one split of its common stock in the form of a stock dividend. The plan awaits shareholders’ approval, as the split will increase the number of authorized shares to 4 billion.

On consummation of the approval, which is expected on June 3 at the company’s 2021 Annual Meeting of Stockholders, each shareholder is entitled to receive the dividend for three additional shares of common stock for every share held as of June 21, 2021. The dividend is likely to be paid on July 19, while the stock split-adjusted basis trading will begin the next day.

Recently, NVIDIA revealed a new wave of GeForce RTX laptops, which are delivering real-time ray tracing and AI-based DLSS to a huge number of gamers and creators.

The platforms, which are based on the new GeForce RTX 3050 Ti and 3050 Laptop GPUs, bring NVIDIA’s Ampere architecture with dedicated RT and Tensor Cores to the most mainstream audience yet, and expand the number of RTX 30 Series laptops to more than 140, the company said.

Analyst Recommendations

Recently, Susquehanna analyst Christopher Rolland reiterated a Buy rating and a price target of $700 (11.8% upside potential) on the stock.

Rolland said, “From a high level, we expect another beat-and-raise as continued stay-at-home dynamics, Ampere gaming ramp, and crypto-mining drove GPU demand to all-time highs. Having said that, we expect the pace of demand to slow moving beyond the April quarter (estimated up +75% YOY), as reopenings continue across the US and physical activities resume.”

On May 25, Needham analyst Rajvindra Gill assigned a Buy rating and a price target of $800 (27.8% upside potential) on the stock.

For Q1, Gill expects “a strong quarter and guide driven by unprecedented demand for GeForce 3000 series (Ampere) and rapid adoption of RDX/ray-tracing enabled cards, and continued upside from CMP and data center inference and training sales.”

“Demand has continued to be robust across the board and with NVIDIA products in short supply, there remains a possibility of upside to these numbers on even firmer pricing,” the analyst added.

Consensus among analysts is a Strong Buy based on 16 Buys versus 1 Hold. The average analyst price target stands at $705 and implies upside potential of 12.6% to current levels.

Bloggers Weigh In

Furthermore, TipRanks data shows that financial blogger opinions are 92% Bullish on NVDA, compared to a sector average of 69%.

Related News:
Cabot and Cimarex Ink All-Stock Merger Deal; Shares Fall
BioMarin Gets EMA Permit for Accelerated Assessment of Valoctocogene Roxaparvovec
Lennox Bumps Up Quarterly Dividend By 19%

Stay-at-home trends, a rise in crypto mining, and the in-demand Ampere gaming card have joined forces to help propel expectations on the Nvidia Corp. (NVDA) Q2 results and guidance. They will be released Wednesday, May 26, after market hours. (See Nvidia stock analysis on TipRanks)  

Christopher Rolland of the Susquehanna Financial Group published a report arguing that while the graphics processing unit (GPU) market was “white hot” in the past quarter, it will inevitably have to cool off. The powerful momentum that brought GPU demand up 75% year-over-year to an all-time high, will surely slow down following the April quarter.  

Rolland maintained a Buy rating on the stock, and assigned a price target of $700. This represents 11.84% potential upside.

Additionally, Rolland noted that supply side difficulties with the popular Nintendo Switch hardware and Ampere gaming cards would put a ceiling on NVDIA’s possible upside. Global semiconductor shortages are no doubt a concern, but Rolland believes Nvidia is poised to weather through it because it manufactures with both TSMC and Samsung.  

TipRanks currently ranks Rolland as a Top Analyst with a five-star rating.

NVDA maintains a Strong Buy according to TipRanks' analyst rating consensus, based on 1 Hold and 16 Buy ratings. The stock currently has an average analyst price target of $705, representing a 12.64% potential upside. NVDA closed Tuesday at a price of $625.91 per share.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

These Tech Stocks Are Garnering Investors’ Attention This WeekOver the past few years, tech stocks have consistently been a sound investment in the stock market. And the reason is simple, everyone knows that tech companies hold the key to our future. Many tech stocks may ap

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Wall Street's main indexes were set to rise at the opening bell on Tuesday, buoyed by gains in technology-related mega caps as inflation worries ebbed and U.S. bond yields eased for the fourth straight day.

For the past 15 months, investors have borne witness to history on Wall Street. They navigated their way through the quickest bear market decline of at least 30% on record -- a loss of 34% for the benchmark S&P 500 (SNPINDEX: ^GSPC) in 33 calendar days -- and have enjoyed the str