Nvidia

On Wednesday, Nvidia Corporation (NASDAQ:NVDA) issued a better-than-expected fiscal second quarter report. However, its shares fell after the report, but still remain about 150% up for the year as Nvidia continues to serve big companies like Microsoft (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) Alphabet (NASDAQ:GOOG)(NASDAQ:GOOGL), Meta Platforms (NASDAQ:META) and Tesla Inc (NASDAQ:TSLA). Second Quarter Highlights For the quarter ended in July, Nvidia reported its revenue surged 122% on a YoY basis as it topped $30 billion. After three straight quarters of YoY growth surpassing 200%, revenue of $30.04 billion still surpassed LSEG’s estimate of $28.7 billion. Net income more than doubled to $16.6 billion, or 67 cents per share while adjusted earnings per share of 68 cents surpassed LSEG’s estimate of 64 cents. The gross margin did slip to 75.1% from the first quarter’s 78.4%, but it is up compared to last year’s comparable quarter when it amounted to 70.1%. Data center […]

Nvidia Corp. (NASDAQ:NVDA) outperformed expectations, with impressive second-quarter earnings that beat forecasts. The AI computing giant credited its soaring revenue to robust data center performance, although its gross margin showed a slight contraction from the previous quarter. Nvidia also issued an above-consensus revenue forecast for the third quarter and announced a massive $50-billion stock repurchase authorization. Despite these strong results, Nvidia’s shares fell 3.6% in after-hours trading. Here’s how top Wall Street analysts are reacting to Nvidia’s latest performance: Read Also: Nvidia Slumps Nearly 5% In Premarket, Dragging Down Super Micro, Micron And Other Peers: What’s Going On? JPMorgan: Analyst Harlan Sur rates Nvidia stock as Overweight with a price target of $155, up from $115. “We expect solid demand in PC gaming to be a strong revenue driver for the company,” Sur wrote. He remains positive about Nvidia’s growth prospects in data centers and automotive segments, expecting continued strength

Nvidia’s (NVDA) purchase commitments and supply obligations showed significant growth for the first time in several quarters during fiscal Q2, UBS said in a note Thursday. Analysts, including Timothy Arcuri, said one of the key positive takeaways is the roughly $10 billion increase in the company’s total supply. This includes $6.7 billion in inventory and $27.8 billion in purchase commitments. This represents a 40% increase from the previous quarter, reversing a trend of slower growth. Compared to Nvidia’s revenue guidance, the ratio of supply to revenue has increased significantly. This ratio has historically been a good predictor of future revenue growth. “Nvidia traded down in immediate post-market trading related in part to somewhat frothy expectations around where guidance would land and what we long considered be unrealistic expectations the company had set three months ago around the timing for Blackwell volume shipments and how much revenue it would see this

Nvidia continues to deliver strong growth, and while this looks set to continue there remains little margin for error, Quilter Cheviot analyst Ben Barringer writes in a note. “Nvidia has grown to a point where there is little room for error and any sign of slowing or normalization of growth will have an outsized effect on the share price,” Barringer says. However, demand for AI remains strong, with the company noting its potential for growth in every sector, he adds, adding that Nvidia remains well placed for future growth. Shares closed down 2.1% on Wednesday at $125.61.

Is a great business worth any price? Nvidia investors finally seem to be asking themselves that question. The chip maker powering the artificial-intelligence revolution blew past $3 trillion in market capitalization earlier this month barely three months after passing $2 trillion. It even became the world’s most valuable company earlier this week, briefly surpassing Microsoft and Apple. That seems to have given investors some pause; Nvidia’s share price has slipped nearly 7% since trading resumed after the Juneteenth holiday. Still, with a value of a little over $3.1 trillion as of Friday’s close, Nvidia is hardly cheap. That is merely 2% below that of Apple, a company with more than 2 1/2 times Nvidia’s trailing 12-month free cash flow. The stock is also now at nearly 45 times projected earnings for the next four quarters. That is 11% above its five-year average multiple and about 35% higher than what the

By Adam Clark Nvidia stock was rising early on Friday to finish its first week following its stock split on a positive note. The chip maker has risen ahead of Wall Street’s consensus targets for the stock. Nvidia shares were up 1.5% at $131.57 in premarket trading. The stock closed up 3.5% on Thursday. Nvidia’s 10-for-1 stock split took effect a week ago and the stock is now ahead of Wall Street’s average price target of $123.35, according to FactSet. Nvidia’s strong rally has seen it outpace analysts’ expectations on multiple occasions during the AI rally. The company’s forward price-to-earnings multiple currently stands at around 43 times. That’s not putting off the bulls. Oppenheimer’s Rick Schafer reiterated a $150 price target on the stock in a research note this week, based on a price-to-earnings multiple of 36 times Nvidia’s forecast earnings in 2026. “We see several structural tailwinds driving sustained

By Heard Editors Another $3 trillion Big Tech company just got minted. On Wednesday it became Nvidia’s turn to join that rarefied club, which includes Apple and Microsoft, as its stock gained 5.2%. The chipmaker, which is set to execute a stock split after markets close on Friday, is up 147% so far this year. Big Tech companies keep blowing past enormous market capitalizations to power the stock market’s gains. The Nasdaq Composite hit another record Wednesday, advancing 1.96%, thanks to the tech giants. Besides Nvidia, shares of Meta Platforms, Microsoft, Alphabet, Apple and Amazon.com also advanced. The S&P 500 also rallied to a new high, adding 1.2%, while the Dow industrials edged up 0.3%, gaining 96 points. Easing borrowing conditions may have something to do with the recent stock market gains. The yield on the 10-year Treasury note fell for a fifth straight day to 4.289%. Treasury yields have

NVIDIA (NVDA), Broadcom (AVGO), and other chip stocks might face some challenges in the short term, however, cloud computing, the automotive industry, and complexity continue to back a bullish view, BofA Securities said in a note Monday. Analysts, including Vivek Arya, said that the SOX index has gone up 23% this year, with semiconductor companies now being among the biggest in the S&P 500 index. Previously, chip stocks and the broader market or SPX had similar price-to-earnings ratios, but since November 2022, the SOX index has been trading at a higher premium. In the short term, however, the SOX might face some challenges due to factors like increasing interest rates, US elections, geopolitical tensions, negative news about artificial intelligence, and seasonal weakness in Q3, the analysts added. The top five global semiconductor equipment stocks are currently trading at a 46% premium versus their historical average, with a price-to-earnings ratio of

Nvidia needs to grow by 70% a year to support its stock price Nvidia’s stock is unlikely to produce the return that exuberant investors are expecting. Nvidia (NVDA) shareholders need a reality check. Nvidia’s stock price is currently trading on the implicit assumption of faster growth than even the most optimistic Wall Street analyst is projecting. Nvidia’s stock is unlikely to produce the return that exuberant investors are expecting. Pointing this out is not a criticism of the company, whose performance has been nothing short of phenomenal. It’s a matter of simple math: How fast must Nvidia grow to support its stock price? The answer depends on two key points: What the stock’s return will be over the next five years: It would be unrealistic to assume Nvidia’s stock will appreciate at the same fantastic rate it has over the past 12 months (176%) or the past five years (100%

At Computex 2024, Jensen Huang spent his keynote articulating the company’s opportunities ahead as we embark on the next industrial revolution, driven by AI factories. We see this sea change as in the very early innings. On the hardware side, Blackwell remains slated to ramp in the second half this year, with an Ultra Blackwell chip slated for 2025, while the successor to Blackwell was also announced (named Rubin) and is likely to ramp in early 2026. This is in line with NVDA’s intent to reduce the GPU cadence. Although Jensen didn’t go into details, Rubin is likely to provide a massive step up in compute to Blackwell and will be based on HBM4. On the software side, NVDA’s competitive moat appears stronger than ever given its ability to control the entire stack and more than 350 (and growing) domain specific libraries that continue to help support penetration into new