Nvidia crushed earnings expectations for the quarter ending January, and issued a strong guidance for the current quarter.
The chipmaker’s adjusted earnings for the quarter rose +69% from the year-ago quarter to $1.32, and beating the $1.22 expected by analysts polled by Refinitiv.
Revenue surged +53% year-over-year to $7.64 billion, versus $7.42 billion expected.
Nvidia’s sales from its data center business rose +71% year-over-year, while revenue from its gaming business climbed +37%. Professional Visualization business rose +109% annually. However, the company’s automotive business was down -14%.
The company projects revenue of $8.1 billion in the first quarter, higher than analyst forecast of $7.29 billion.
CEO Jensen Huang said that the company is experiencing “exceptional” demand because its chips are useful for artificial intelligence and other intensive applications.
According to Huang’s statement, Nvidia’s supply constraints were easing and that supply of products would rise “substantially” in the second half of 2022.
Nvidia said it had $9 billion in long-term supply obligations, up from $2.54 billion a year ago.
NVDA broke above its upper Bollinger Band on February 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 56 similar instances where the stock broke above the upper band. In of the 56 cases the stock fell afterwards. This puts the odds of success at .
The 10-day RSI Indicator for NVDA moved out of overbought territory on March 26, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 50 similar instances where the indicator moved out of overbought territory. In of the 50 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 71 cases where NVDA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NVDA turned negative on March 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 48 similar instances when the indicator turned negative. In of the 48 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 .
The Momentum Indicator moved above the 0 level on March 28, 2024. You may want to consider a long position or call options on NVDA as a result. In of 77 past instances where the momentum indicator moved above 0, the stock continued to climb. 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 365 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 364 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 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 61, 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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 (52.632) is very high in comparison to the industry average of (7.394). P/E Ratio (75.666) is within average values for comparable stocks, (127.208). Projected Growth (PEG Ratio) (1.217) is also within normal values, averaging (2.455). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.020). P/S Ratio (36.900) is also within normal values, averaging (12.494).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of computer graphics processors, chipsets, and related multimedia software
Industry Semiconductors