Looking at the universe of stocks we cover at Dividend Channel, on 11/30/22, NVIDIA Corp (Symbol: NVDA), Vontier Corp (Symbol: VNT), and Shutterstock Inc (Symbol: SSTK) will all trade ex-dividend for their respective upcoming dividends. NVIDIA Corp will pay its quarterly divid
In today's video, Jose Najarro and Nick Rossolillo discuss Nvidia (NASDAQ: NVDA), its most recent earnings, and why the bottom might be near for this semiconductor giant. Check out the short video to learn more, consider subscribing, and click the special offer link below.
Wall Street's main indexes fell on Monday amid worries about protests in major Chinese cities against strict COVID-19 policies, although gains in Amazon helped limit losses as Cyber Monday sales were set for a record.
Although AMD (NASDAQ: AMD) and Nvidia (NASDAQ: NVDA) have different product lines, they still compete against each other in some offerings. As a result, the two are often compared, with Nvidia often coming out as the better company up until a few months ago.
Wall Street's main indexes were set to open lower as protests in major Chinese cities against strict COVID-19 policies reignited concerns about economic growth, while Apple slipped on a report of disruption in production at a factory in China.
As 2022 starts to close, it's only natural for investors to start peeking toward 2023. So far in 2022, the indexes have fared pretty miserably, with the Nasdaq-100 down 29% and the S&P 500 down 17%. Which one will have a better 2023?Let's look at these indexes and their makeu
U.S. stock index futures fell on Monday as protests in major Chinese cities against the country's strict zero-COVID policy re-ignited concerns about economic growth, while Apple shares slipped on a report of disruption in China production.
The stock market has been intimidating for beginners this year. Major stock indexes are falling, and several factors are keeping volatility high. This makes it difficult for new investors to choose stocks to buy and hold. Luckily, there are key characteristics that can help inves
Shares of semiconductor giant Nvidia (
NASDAQ:NVDA
) and its peers have plunged this year due to macro pressures, the newly imposed controls on chip exports to China, and the weakness in demand in key end markets, like personal computers (PC) gaming. Nvidia stock has advanced 22.7% over the past one month, but is still down nearly 45% year-to-date.
Nvidia Faces Near-Term Headwinds
Nvidia’s Q3 FY23 (ended October 30, 2022)
revenue exceeded analysts’ estimates but earnings lagged expectations. Nonetheless, both the metrics declined on a year-over-year basis.
Revenue fell 17% to $5.9 billion, while adjusted earnings per share declined 50% to $0.58.
Remote work, online education, and the rapid transition of enterprises to the cloud during the pandemic fueled strong demand for Nvidia’s graphics processing units (GPUs) that are used in PC gaming, data centers, and other applications. The company’s sales also gained from strong crypto-mining demand.
The demand in the PC gaming market has declined since the reopening of the economy. Also, the crypto winter has impacted Nvidia’s GPU sales. Furthermore, the
Biden administration’s export controls on advanced chips added to Nvidia’s woes. In Q3 FY23, Nvidia’s Gaming revenue declined 51% to $1.6 billion. However, Data Center revenue grew 31% to $3.8 billion. Interestingly, Automotive and Embedded revenue surged 86% to $251 million.
Nvidia’s Q4 revenue is expected to remain under pressure due to continued weakness in gaming and China market.
What Are Analysts Saying About Nvidia Stock?
Following the results, Summit Insights analyst Kinngai Chan upgraded Nvidia to Buy from Hold. The analyst believes that Nvidia stock has a favorable risk-reward profile. Chan expects the company to benefit from tailwinds through next year, mainly fueled by its new product cycle.
J.P. Morgan analyst
Harlan Sur feels that the near-term headwinds impacting Nvidia’s business are beginning to fade. The analyst believes that Nvidia is poised to witness accelerated growth next year. Sur reaffirmed a Buy rating on Nvidia stock and a price target of $220.
Overall, Wall Street’s Moderate Buy consensus rating for NVDA stock is based on 23 Buys versus eight Holds. The average Nvidia stock price target of $195.79 implies 20.3% upside potential.
Conclusion
Macro challenges and weak demand in certain end markets are expected to impact Nvidia’s revenue and earnings in Q4 FY23 and Q1 FY24. These headwinds could limit the upside in the stock over the near term. Furthermore, Nvidia’s forward P/E multiple (based on adjusted earnings) of 50.5x is considerably higher than the sector median of 19.3x.
That said, analysts expect Nvidia’s business to recover strongly from the second quarter of FY24. Most Wall Street analysts are looking beyond the near-term weakness and focusing on the robust long-term prospects for the company in data centers, automotive, and artificial intelligence (AI).
Disclosure
Mobileye (NASDAQ: MBLY) and Nvidia (NASDAQ: NVDA) represent two very different ways to invest in the semiconductor sector. Mobileye, which was spun off from Intel (NASDAQ: INTC) earlier this year, is the world's leading producer of advanced driver assistance systems (ADAS) and co
Quantum computing is a type of computing where information is processed using quantum bits instead of classical bits. Actually, quantum computing has the potential to revolutionize the speed and accuracy of calculations, which could have huge implications for businesses and indus
Shares of semiconductor giant Nvidia (
NASDAQ:NVDA
) and its peers have plunged this year due to macro pressures, the newly imposed controls on chip exports to China, and the weakness in demand in key end markets, like personal computers (PC) gaming. Nvidia stock has advanced 22.7% over the past one month but is still down nearly 45% year-to-date.
Nvidia Faces Near-Term Headwinds
Nvidia’s Q3 FY23 (ended October 30, 2022)
revenue exceeded analysts’ estimates but earnings lagged expectations. Nonetheless, both the metrics declined on a year-over-year basis.
Revenue fell 17% to $5.9 billion, while adjusted earnings per share declined 50% to $0.58.
Remote work, online education, and the rapid transition of enterprises to the cloud during the pandemic fueled strong demand for Nvidia’s graphics processing units (GPUs) that are used in PC gaming, data centers, and other applications. The company’s sales also gained from strong crypto-mining demand.
The demand in PC gaming market has declined since the reopening of the economy. Also, the crypto winter has impacted Nvidia’s GPU sales. Furthermore, the
Biden administration’s export controls on advanced chips added to Nvidia’s woes. In Q3 FY23, Nvidia’s Gaming revenue declined 51% to $1.6 billion. However, Data Center revenue grew 31% to $3.8 billion. Interestingly, Automotive and Embedded revenue surged 86% to $251 million.
Nvidia’s Q4 revenue is expected to remain under pressure due to continued weakness in gaming and China market.
What Are Analysts Saying About Nvidia Stock?
Following the results, Summit Insights analyst Kinngai Chan upgraded Nvidia to Buy from Hold. The analyst believes that Nvidia stock has a favorable risk-reward profile. Chan expects the company to benefit from tailwinds through next year, mainly fueled by its new product cycle.
J.P. Morgan analyst
Harlan Sur feels that the near-term headwinds impacting Nvidia’s business are beginning to fade. The analyst believes that Nvidia is poised to witness accelerated growth next year. Sur reaffirmed a Buy rating on Nvidia stock and a price target of $220.
Overall, Wall Street’s Moderate Buy consensus rating for NVDA stock is based on 23 Buys versus eight Holds. The average Nvidia stock price target of $195.79 implies 20.3% upside potential.
Conclusion
Macro challenges and weak demand in certain end markets are expected to impact Nvidia’s revenue and earnings in Q4 FY23 and Q1 FY24. These headwinds could limit the upside in the stock over the near-term. Furthermore, Nvidia’s forward P/E multiple (based on adjusted earnings) of 50.5x is considerably higher than the sector median of 19.3x.
That said, analysts expect Nvidia’s business to recover strongly from the second quarter of FY24. Most Wall Street analysts are looking beyond the near-term weakness and focusing on the robust long-term prospects for the company in data centers, automotive, and artificial intelligence (AI).
Disclosure
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Nvidia's (NASDAQ: NVDA) conference call following its third-quarter earnings announcement revealed many critical factors about its short- and long-term business prospects.
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On Nov. 16, Nvidia (NASDAQ: NVDA) reported its financial results for the third quarter of fiscal 2023 (ended Oct. 30). The report revealed a slowdown in overall revenue. The company is a leading producer of advanced semiconductors, and it has been generating red-hot growth over t
Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in NVIDIA Corp (Symbol: NVDA), where a total volume of 429,393 contracts has been traded thus far today, a contract volume which is representative of approximately
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