NVIDIA Soars on Impressive Earnings Beat – Still Room for Growth?
New York, New York – On May 13th, Shares of NVIDIA Corp. (NASDAQ: NVDA) surged 15.01 percent to close at $40.98 a share, up roughly 100% in the past year, after quarterly results surpassed estimates. NVIDIA reported GAAP earnings per diluted share of $0.33 for the first quarter of fiscal 2017, an increase of 38 percent year-over-year. Revenues for the quarter totaled $1.31 billion, a 14.0 percent increase year-over-year and above analysts’ forecasts of $1.26 billion.
“We are enjoying growth in all of our platforms- gaming, professional visualization, datacenter and auto,” Jen-Hsun Huang, co-founder and CEO of Nvidia, said in a statement. “We are excited to bring a new wave of innovations to the markets we serve.”
Access our free in-depth equity report on NVIDIA here!
NVIDIA is a major manufacturer and inventor of the GPU (Graphics Processing Unit), which the company describes as “a revolutionary processor that makes possible the beautiful graphics in today’s games and films”. The company has seen sharp demand growth for its GPUs in the gaming, auto and data center markets. Revenues from gaming platforms increased 13.0 percent year-over-year to $687 million in the fiscal first quarter. Data center revenues spiked 63 percent year-over-year to $143.0 million, while auto-related revenues spiked 47 percent year-over-year to $113.0 million.
“In the future we’re going to see a lot more success with automotive here in the United States, here in Silicon Valley, in China,” Huang commented on a call with analysts. “We’re going to see a lot more global penetration because of our self-driving car platform.”
The company forecasts revenues to be approximately $1.35 billion for the second quarter of fiscal 2017, which topped average analysts’ estimates of $1.28 billion.
3 companies we believe have better growth potential than NVIDIA!
Consumer demand for smartphones and tablets show no signs of slowing down. The industry is always evolving as tech giants Apple, Microsoft and Samsung are constantly coming out with new gadgets that consumers must have! Sorting through the infinite amounts of information for the next big winner is an almost an impossible task for the average investor. Luckily, we take the hard work, time, and effort off your shoulders. Click here to learn more about our top picks!