Nvidia Corp. beat Q3 earnings and revenue expectations. However, the semiconductor company warned that capacity issues and lower demand from Mellanox would affect near-term revenue growth in its key businesses.
Nvidia’s Q3 earnings came in at $2.91 per share, up +63% year-overt-year and 34 cents ahead of Street forecasts.
Revenues for the quarter increased +57% year-over-year to $4.73 billion, surpassing the Street consensus forecast of $4.4 billion.
The Company’s datacenter revenues (which make up around 50% of the group's total) climbed +8% quarter-over-quarter and +162% year-over-year to $1.9 billion. This includes impact of a major purchase from a China-based client, and its recent acquisition of Israel-based networking group Mellanox.
Gaming revenue surged +37% year-over-year to $2.27 billion.
According to Nvidia, gaming revenue is likely to continue to accelerate. But CFO Collette Kressal mentioned that due to industry-wide capacity constraints and long cycle times, it may take a few more months for product availability to catch up with demand.
The company’s guidance is revenue of $4.8 billion, plus or minus 2%, with CFO Collette Kress also suggesting a decline in revenue from Mellanox, which will likely mean modestly lower sequential data center revenues.
NVDA may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 34 cases where NVDA's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NVDA advanced for three days, in of 373 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 377 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 10-day RSI Indicator for NVDA moved out of overbought territory on November 08, 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 45 similar instances where the indicator moved out of overbought territory. In of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on November 21, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NVDA as a result. In of 78 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 .
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 70, 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 (51.282) is very high in comparison to the industry average of (8.631). P/E Ratio (54.580) is within average values for comparable stocks, (58.557). Projected Growth (PEG Ratio) (0.861) is also within normal values, averaging (3.013). NVDA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (30.303) is also within normal values, averaging (49.147).
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
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