Supply chain disruptions sparked by the pandemic have created problems in numerous industries. For instance, automakers and consumer electronics companies are currently grappling with chip shortages, and those headwinds may last through next year. Of course, that particular probl
Today's video focuses on Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD). These two semiconductor stocks continue to perform strongly, ignoring most of the downturn the stock market has seen these past few days. Here are some highlights from the video.
Once upon a time, companies would set out to change the world. But now, some of the largest technology giants are coming together with a new goal: building an entirely new one. The virtual realm is formally known as the metaverse, and it's going to change the way we live, work, a
Lots of investors enjoy looking for unique growth opportunities most other people have yet to find. The fact is, however, the pillars of your portfolio are going to look quite a bit like the big winners found among everyone else's holdings. The better the prospect, the more likel
Nvidia's stock (NASDAQ: NVDA) hit an all-time high after the chipmaker posted its third-quarter earnings report on Nov. 17. Its revenue rose 50% year-over-year to $7.1 billion, beating estimates by $290 million. Its adjusted net income increased 62% to $2.97 billion, or $1.17 per
Wall Street shares finished higher in choppy trading on Wednesday ahead of the U.S. Thanksgiving holiday as U.S. Treasury yields hovered near the year's highs.
Wall Street ended higher on Wednesday, lifted by gains in Nvidia and other tech stocks, while Gap and Nordstrom shares tumbled following weak quarterly reports.
Wall Street ended higher on Wednesday, lifted by gains in Nvidia and other tech stocks, while Gap and Nordstrom shares tumbled following weak quarterly reports.
Wall Street was mixed on Wednesday after the Federal Reserve released minutes of its most recent monetary policy meeting, while Gap and Nordstrom plunged following weak quarterly reports.
What happened
Shares of graphics semiconductor supplier Nvidia (NASDAQ: NVDA) recovered from their mini sell-off Tuesday, regaining 2% in Wednesday trading as of 12:25 p.m. ET.
Today's video focuses on Roundhill Ball Metaverse ETF (NYSEMKT:META) and why it could be one of the best ways to invest in the metaverse. Here are some highlights from the video.
Nvidia (NASDAQ: NVDA) crushed Wall Street's expectations when it released its fiscal 2022 third-quarter results on Nov. 17, with its record numbers and impressive guidance sending the stock up 8% to a new all-time high post the release.
Nvidia (NASDAQ: NVDA) CEO and co-founder Jensen Huang's comments during quarterly earnings updates are always a must-listen. But the leader of the world's largest semiconductor company (as measured by market capitalization) dropped some real bombshells during the fiscal 2022 thir
When it comes to market-crushing performance, there's no question that Nvidia (NASDAQ: NVDA) qualifies on all accounts. The maker of graphics processing units (GPUs) has gained 145% so far this year, and that isn't an anomaly. Over the most recent five- and 10-year periods, the s
California-based Nvidia (NVDA) is a multinational semiconductor company. It makes graphics processors used in gaming devices, data centers, self-driving cars, and other professional markets. In a business expansion move, Nvidia agreed to acquire chipmaker ARM for $40 billion in cash and stock.
With this in mind, let us look at the company's recent financial results and understand its key risk factors. (See Insiders’ Hot Stocks on TipRanks)
Q3 Financial Results
Nvidia reported a 50% year-over-year increase in revenue to $7.1 billion for the third quarter ended October 31. It posted adjusted EPS of $1.17 against $0.73 in the same quarter last year.
The company ended the quarter with $1.3 billion in cash. It plans to distribute a quarterly cash dividend of $0.04 per share on December 23. (See Nvidia stock charts on TipRanks).
Risk Factors
According to the new TipRanks' Risk Factors tool, NVDA's main risk categories are Finance & Corporate, Tech & Innovation and Macro & Political, which account for 19% each of the total 21 risks identified for the stock.
In an updated Financial and Corporate risk factor, Nvidia has reminded investors that it has $12 billion in outstanding notes maturing between 2021 and 2026. It also has a credit agreement that allows it to borrow up to $575 million and potentially an additional $425 million under a revolving loan facility. However, the company cautions that servicing debts may consume much of its cash flow.
Furthermore, the credit agreements may limit its ability to obtain future financing. As a result, Nvidia wants investors to know that it may experience challenges in funding capital expenditures and acquisitions. The debt burden may also make the company more vulnerable in adverse economic conditions.
Regarding the $7 billion acquisition of Mellanox and the pending purchase of ARM, Nvidia reminds investors that it may not achieve the anticipated benefits of those acquisitions. It has mentioned potential challenges such as integrating the acquired businesses and surprise liabilities that may be uncovered in the future.
The Finance and Corporate risk factor's sector average is at 40%, compared to NVDA's 19%. Shares of the company have gained about 143% year-to-date.
Analysts’ Take
Following Nvidia’s third-quarter earnings report, Benchmark analyst David Williams maintained a Buy rating on the stock and raised the price target to $365 from $230. Williams’ new price target suggests 14.98% upside potential.
Consensus among analysts is a Strong Buy based on 22 Buys and 2 Holds. The average Nvidia price target of $359.09 implies 13.11% upside potential to current levels.
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