Is NVIDIA Corporation (NVDA)’s Winning Streak Coming To An End?
NVIDIA Corporation (NVDA) Information Technology – Semiconductors | Reports August 11, After Market Closes
NVIDIA Corporation (NVDA) 2Q Earnings – Key Takeaways
- The Estimize consensus is calling for earnings per share of 41 cents on $1.37 billion in revenue, 4 cents higher than Wall Street on the bottom line and nearly $20 million on the top
- NVidia has been the one of the biggest winners in the semiconductor space over the last year as shares have increased over 150%
- New ventures such as data centers, automotives and major league gaming have the potential to take NVidia to the next level
- What are you expecting for NVDA? Get your estimate in here!
NVidia is scheduled to announce its second quarter results tomorrow after the market closes. The company is best known for its portfolio of graphic cards found in high end gaming computers. But recently they are emerging in high growth markets such as major league gaming, professional visualization, data centers and even automotives. Deeper penetration will add a new layer of revenue to support NVidia’s already established GPU business. The company has topped expectations in each of the past 4 quarters, and tomorrow is expected to follow that pattern.
The Estimize consensus is looking for earnings per share of 41 cents, 20% higher from the same period last year. That estimate has increased 5% since NVidia’s most recent report in May. Revenue is anticipated to jump 19% to $1.37 billion, marking a 3 consecutive quarters of double digit top line growth. The stock has been one of the biggest winners lately. Shares are up 78% year to date and a resounding 155% in the past 12 months. On average, the stock historically has popped 3% immediately following a report.
NVidia’s core business and majority of its growth still stems from gaming. The industry is one of the fastest growing spaces with NVidia sitting atop the GPU portion of the market. Last quarter, gaming revenue increases 17% thanks to the momentum carried forward from a the strong holiday season. The launch of its first Pascal GPU, GeForce GTX 1080 and 1070, have been received with rave reviews. New product releases and developments in VR are expected to be long-term growth drivers
The business’s other ventures have performed just as well in recent quarters. Its data center business grew by 63% during the first quarter and should to be a top performer. The growth of its other businesses have the ability to take the company to the next level.
The chipmaker still sees significant risk from stiff competition. AMD is breaking through the GPU industry as a force to be reckoned with. Its newest Polaris graphic card has been lauded by gamers as the best chip on the market. If NVidia starts to lose considerable market share to AMD, don’t expect the stock to continue making gains.
Do you think NVDA can beat estimates? There is still time to get your estimate in here!