NVDA stock

It's only been six months since Nvidia Corp. was being hailed as Wall Street's next $1 trillion tech stock. The memory now seems distant.

Record quarterly revenue of $8.29 billion, up 46% from a year agoRecord quarterly revenue for Data Center and Gaming SANTA CLARA, Calif., May 25, 2022 ...

NVIDIA, the NVIDIA logo, GeForce, GeForce NOW, GeForce RTX, NVIDIA Clara, NVIDIA CUDA-X, NVIDIA DGX, NVIDIA DRIVE, NVIDIA DRIVE Orin, NVIDIA Grace, NVIDIA Hopper, NVIDIA Isaac, NVIDIA Jetson, NVIDIA Omniverse, NVIDIA OVX, NVIDIA Spectrum and NVLink are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances. Other company and product names may be trademarks of the respective companies with which they are associated. The company’s pioneering work in accelerated computing and AI is reshaping trillion-dollar industries, such as transportation, healthcare and manufacturing, and fueling the growth of many others. About NVIDIA NVIDIA’s (NASDAQ: NVDA) invention of the GPU in 1999 sparked the growth of the PC gaming market and has redefined modern computer graphics, high performance computing and artificial intelligence. The presentation of the company’s non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company’s financial results prepared in accordance with GAAP, and the company’s non-GAAP measures may be different from non-GAAP measures used by other companies. Non-GAAP earnings per diluted share were $1.36, up 49% from a year ago and up 3% from the previous quarter. For NVIDIA’s investors to be better able to compare its current results with those of previous periods, the company has shown a reconciliation of GAAP to non-GAAP financial measures. NVIDIA believes the presentation of its non-GAAP financial measures enhances the user’s overall understanding of the company’s historical financial performance. To supplement NVIDIA’s condensed consolidated financial statements presented in accordance with GAAP, the company uses non-GAAP measures of certain components of financial performance. Our new chips and systems will greatly advance AI, graphics, Omniverse, self-driving cars and robotics, as well as the many industries these technologies impact,” he said. Data Center has become our largest platform, even as Gaming achieved a record quarter.

Nvidia's latest earnings were better than expected, but the company provided a soft outlook citing impacts from Covid-19 and Russia.

Nvidia shares are trading lower in late trading Wednesday, after the chip maker provided a softer-than-expected outlook for its July quarter. In March, Nvidia had announced the halt of all product sales in Russia. Meanwhile, the issues involving Covid-related manufacturing shutdowns in China are consistent with recent reports from other companies, including both Cisco Systems (CSCO) and Apple (AAPL). The company cited the impact of both reduced business in Russia and Covid-related manufacturing shutdowns in China.

Earnings are likely to keep Nvidia's growth narrative intact, but NVDA stock buyers are at increased risk of a larger bear market.

And in today’s very bearish market environment, that means waiting to buy a Nvidia collar, let alone NVDA stock, with a more clear-cut advantage is the smarter money play. Coupled with a marginally out-of-position weekly stochastics and NVDA stock price that’s not wildly oversold, there’s simply insufficient evidence to own shares, while ignoring the increased risk of additional downside. And in conjunction with an options collar spread, a hedged position might be considered despite the threat of lower share prices. NVDA stock sports a median 12-month price target of $310 and premium of nearly 92% to Tuesday’s closing print. Profits are expected to climb by a similar and robust 42% on earnings of $1.29 per share. And semiconductor giant Nvidia (NASDAQ: NVDA) wasn’t immune, as NVDA stock sank nearly 4.5% on the session.

Nvidia shares fell in the extended session Wednesday after COVID shutdowns in China and the Ukraine war shaved $500 million off its outlook.

“So overall, the demand for gaming is still strong: We still expect end demand to grow year-over-year in Q2.” Meanwhile, Nvidia’s first-quarter data-center sales surged 83% to a record $3.75 billion from $2.05 billion in the year-ago period, while analysts had expected $3.6 billion. Nvidia reported first-quarter net income of $1.62 billion, or 64 cents a share, compared with $1.91 billion, or 76 cents a share, in the year-ago period. “All of these things are driving our data-center growth, and so we expect to see data-center demand remain strong.” “Channel inventory has nearly normalized and we expect it to remain around these levels in Q2.” For the fiscal second, or current, quarter, Nvidia NVDA, +5.08%forecast revenue of $7.94 billion to $8.26 billion, while analysts surveyed by FactSet have forecast revenue of $8.4 billion on average. Over the past 12 months, Nvidia shares are up 8%, while at the same time nearly 50% off their record closing high of $333.76 set on Nov. 29. Nvidia reported second-quarter gaming revenue of $3.06 billion in 2021’s second quarter. That revenue, however, is expected to pull back in the current quarter, further weakening Nvidia’s outlook. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.36 a share, compared with 91 cents a share in the year-ago period. That’s similar to Cisco Systems Inc. CSCO, +0.53%, which reported its earnings this past weekand has an April-ending quarter like Nvidia. Cisco noted that it was broadsided after Chinese authorities locked down Shanghai starting on March 27, which threw a monkey wrench into its ability to get components. In the first quarter, gaming sales rose 31% to a record $3.62 billion from $2.76 billion, while analysts surveyed by FactSet had expected Nvidia gaming sales of $3.46 billion.

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Eric Cuka has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. The video was published on May 25, 2022. Nvidia guided lower for the current quarter.

NVDA stock is retreating after the chip maker's Q2 revenue guidance came in below analysts' average estimate.

The company reported that the demand for its graphics processors remains strong, while the sales of its data center chips had soared 83% YOY last quarter. Nvidia estimated that the war in Ukraine and the Covid-19 lockdowns in China would lower its revenue by about $500 million. For Q2, however, the chip maker predicted that its top line would be $8.1 billion, “plus or minus 2%.” Analysts, on average, had expected Nvidia’s Q2 sales to be $8.44 billion.