Nvidia (NVDA, $152.20) posts revenue drop amidst plunging gaming sales
Nvidia posted its third-quarter adjusted earnings, which exclude stock-based compensation expenses and other items, of 58 cents a share, much lower than the year-ago quarter’s $1.17 a share. Analysts had expected 71 cents a share.
The fabless company’s revenue fell to $5.93 billion from $7.1 billion in the year-ago quarter as gaming sales plunged. The figure is still higher than analysts’ estimate of $5.78 billion.
Data-center sales climbed +31% year-over-year to $3.83 billion, vs. analysts' expectations of $3.72 billion. Gaming sales plummeted -51% to $1.57 billion from a year ago, vs. analysts’ forecast $1.42 billion.
For the fourth quarter, Nvidia is expecting revenue of $5.88 billion to $6.12 billion, while analysts surveyed by FactSet forecast revenue of $6.07 billion.
PC market decreasing, and crypto mining hurt by falling digital coin prices pose potential headwinds for Nvidia’s revenues.
NVDA's RSI Oscillator leaves overbought zone
The 10-day RSI Oscillator for NVDA moved out of overbought territory on November 08, 2024. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 instances where the indicator moved out of the overbought zone. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on December 04, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NVDA turned negative on November 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NVDA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where NVDA's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 375 cases, the price rose further within the following month. The odds of a continued upward trend are .
NVDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 372 cases where NVDA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 69, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NVDA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: NVDA's P/B Ratio (53.909) is very high in comparison to the industry average of (9.168). P/E Ratio (57.268) is within average values for comparable stocks, (58.695). Projected Growth (PEG Ratio) (0.903) is also within normal values, averaging (3.095). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (31.841) is also within normal values, averaging (45.382).
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a manufacturer of computer graphics processors, chipsets, and related multimedia software
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