Bull Of The Day: Nvidia (NVDA)

 

Founded in 1993 and headquartered in Santa Clara, CA, Nvidia Corporation (NVDA - Free Report) is a worldwide leader in visual computing technologies and the inventor of the graphic processing unit (GPU).

The company has successfully transformed from a graphics chip to a GPU computing company and benefits from four multi-billion dollar GPU computing growth drivers —gaming, virtual reality (VR), artificial intelligence (AI), and self-driving cars.

Excellent Second Quarter Results, Upgraded Guidance

The company reported excellent results, beating on both the top and bottom lines and also raising guidance. Record revenues of $2.23 billion were up 56% from a year ago and also ahead of the management’s guidance.

GAAP earnings for the quarter were $0.92 per share up 124% from $0.41 a year ago and up 16% from $0.79 in the previous quarter.

"Adoption of NVIDIA GPU computing is accelerating, driving growth across our businesses," said the CEO. "Datacenter revenue increased more than two and a half times. A growing number of car and robot-taxi companies are choosing our DRIVE PX self-driving computing platform. And in Gaming, increasingly the world's most popular form of entertainment, we power the fastest growing platforms - GeForce and Nintendo Switch.”

"Nearly every industry and company is awakening to the power of AI. This is the era of AI, and the NVIDIA GPU has become its brain. We have incredible opportunities ahead of us," he said.

NVDA’s is also witnessing increasing demand for its GPUs for cryptocurrency mining. “Cryptocurrency and blockchain is here to stay. The market need for it is going to grow, and over time it will become quite large,” said the CEO.

Despite impressive beat and raise, shares fell nearly 7% on Friday but more than recovered all those losses on Monday as many analysts issued bullish notes on the company, given its excellent long-term growth potential.

1 2
View single page >> |

Disclosure: I own shares of NVDA in my personal trading portfolio.

Disclaimer:

Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.