Tech’s the talk in town again – Nvidia stock surges amidst earnings report Nvidia is the new Black

Hey readers! This #Featurefriday we’re revisiting Nvidia (NASDAQ: NVDA). ! It’s earnings season again, and boy do we love earnings! Nvidia’s traction as a leading GPU and SOC manufacturer just doesn’t seem to be letting up, and their stock price is surging through the roof yet again amidst a round of solid fundamentals from their quarterly report.

Nvidia rises to record highs before and after earnings report  (Published: 11/8/2016)

Nvidia Corp. NVDA, +2.03% hit record highs once again on Thursday, then rose even more in late trading after beating earnings expectations. The graphics-chip specialist reported net income of $253 million, or 40 cents a share, on sales of $1.43 billion. Analysts on average expected Nvidia to report a profit of 37 cents a share on revenue of $1.35 billion, according to FactSet. “Strong demand for our new Pascal-generation GPUs and surging interest in deep learning drove record results,” Chief Executive Jen-Hsun Huang said in Thursday’s news release. Nvidia hit an all-time intraday high of $59.95 before closing with a 2% gain at $59.70 Thursday; in immediate late trading after the earnings report was released, shares neared $62. We recommend that our users set call levels with minor upsides this weekend! We certainly are.

Nvidia (NVDA) Stock Up in After-Hours Trading on Q2 Beat, Higher Guidance (Published: 11/8/2016)

One of the core drivers of Nvidia’s revenue model is its Graphics Processing Unit line (GPU). Nvidia’s GPU business increased 25% year-over-year to $1.20 billion, while its gaming division rose 18% year-over-year to $781 million. Its Tegra Processor revenue grew 30% year-over-year to $166 million.

“Our strategy to focus on creating the future where graphics, computer vision and artificial intelligence converge is fueling growth across our specialized platforms — Gaming, Pro Visualization, Datacenter and Automotive.” said Jen-Hsun Huang, chief executive of Nvidia, in a statement. Wise words, and we eagerly await results of next quarter’s report, with the much lauded Pascal processors and deep learning supercomputers added to the accounting equation.

Nvidia’s $1.43 billion in revenue beats expectations as Pascal graphics chips launch (Published: 11/8/2016)

Nvidia’s results bode well for the PC and semiconductor industry, as the company is one of the largest makers of graphic processing units. Its results are also indicators of the health of sectors such as PC gaming hardware, graphics-enhanced data center computing, deep learning, and car computing. The general PC market isn’t booming like it once did, but Nvidia has cleverly diversified itself into other markets, including gaming hardware, professional visualization, data centers,automotive electronics and most recently, deep learning.

Nvidia has an estimated 81 percent share of the discrete graphics card market, according to Jon Peddie Research. Nvidia’s stock is rising at $61 a share in after-hours trading. Nvidia’s outlook for the third fiscal quarter is revenue of $1.68 billion and gross profit margins of 58 percent.

These certainly are some healthy looking fundamentals. In any case, keep a close watch on Nvidia and related tech companies!

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