Nvidia Corporation Stock Surges After FQ3 2018 Earnings

The NVIDIA FQ3 2018 earnings results were released after closing bell on Thursday night. The chip maker reported earnings of $1.33 per share on $2.64 billion in sales, compared to the consensus of 94 cents per share and $2.36 billion in revenue. The NVIDIA FQ3 2018 earnings results were released after closing bell on Thursday night. The chip maker reported earnings of $1.33 per share. In the year-ago quarter, NVIDIA Corporation (Nasdaq: NVDA) reported 94 cents per share in earnings on $2 billion in sales.

Nvidia fq3 2018 earnings

Mizter_x94 / Pixabay

Because of how much NVIDIA stock has gained this year, many analysts are on the sidelines simply because of valuation. However, the NVIDIA FQ3 2018 earnings results caused some perma-bulls to raise their target prices for the company’s stock.

Still on the sidelines on NVIDIA stock

Macquarie analyst Srini Pajjuri and Corey Grady raised their price target for the stock from $155 to $200 following the NVIDIA FQ3 2018 earnings release, although like many other analysts, they kept their Neutralrating due to valuation. They said Data Center reacceleration, the Nintendo Switch and seasonal strength in Gaming PCs drove the October quarter’s strong results.

They expect NVIDIA’s Volta products will continue to be a tailwind going into next year and see “limited competitive risk” in the area of gaming PCs. They also expect strength in the Nintendo Switch to continue through the first half of next year.

NVIDIA’s gross margin came in at 59.5% on the back of a favorable product mix in Data Centers. Data Center revenue grew 20% sequentially to $501 million, while Tegra revenue rose 26% on the back of Nintendo Switch builds. The chip maker’s management said that cryptocurrency mining-related revenue declined, but the Macquarie team believes some miners are using mainstream gaming cards, which could mean that the company’s Gaming segment will slow in the coming quarters due to waning interest in cryptocurrency mining. Auto revenue was flat sequentially at $144 million.

1 2
View single page >> |

Disclosure: This article is NOT an investment recommendation,  please see our disclaimer - Get ...

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.