Nvidia Stock

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.

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.

The company reported net income of $1.61 billion in the quarter on record quarterly revenue of $8.29 billion, up 46% from a year ago. Earnings before certain ...

Furthermore, we estimate the absence of sales to Russia to have a $100 million impact on Q2 in data center.” The company also informed investors that its inventory of graphics chips has now “normalized,” which means that it’s struggling less with shortages than it was before. For the second quarter, Nvidia said it’s expecting revenue of approximately $8.1 billion, plus or minus 2%. The company explained that its forecast was much lower than Wall Street’s target of $8.54 billion because of “Russia and the COVID lockdowns in China,” which are likely to cause a collective shortfall of about $500 million in sales. The company’s total sales grew 46% overall, with both of its core segments seeing a significant jump in revenue. That helped the unit surpass Nvidia’s gaming business, which sells graphics cards used in high-end gaming laptops and consoles. During the first quarter, it spent $2.1 billion on share buybacks and dividend payouts. Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Nvidia Chief Executive Jensen Huang (pictured) hailed the company’s performance in the first quarter. The company reported net income of $1.61 billion in the quarter on record quarterly revenue of $8.29 billion, up 46% from a year ago. The lower forecast prompted investors bail on the company, with Nvidia’s stock losing more than 6% of its value after-hours, erasing a gain of 5% earlier in the day. Following that announcement, Cisco’s stock endured its biggest single-day drop in over a decade. The news came after Nvidia delivered fiscal first-quarter results that beat expectations.

Nvidia shares slumped lower Thursday after the chipmaker issued a muted near-term outlook for the sale of its gaming chips that took the gloss off a solid ...

"Management expects gaming demand in China to recover once lockdowns ease, and indicates Russia represents 2% of total revenues and slightly higher for gaming," he added. Activision Blizzard ( ATVI) - Get Activision Blizzard, Inc. Report has also warned that softer demand for its latest Call of Duty franchise would clip current quarter sales, and reported in April that monthly active users fell 14.5% from last year to 372 million, taking in-game billings down 24.6% to $1.01 billion amid weaker-than-expected demand for its Call of Duty: Vanguard release. "The underlying dynamics of the Gaming industry is really solid, net of the situation with COVID lockdown in China and Russia," CEO Jensen Huang told investors on a conference call late Wednesday. "As we look into the second half of the year, it's hard to predict exactly when COVID and the war in Russia is going to be behind us." Looking ahead, however, Nvidia said current quarter revenues would come in at around $8.1 billion, plus or minus 2%, a tally that fell shy of analysts' estimates thanks in part to weakness in the gaming sector, where revenue "will probably decline in the teens", according to CFO Colette Kress. Nvidia, which makes both data center and gaming sector chips -- some of which are used for cryptocurrency mining -- posted Street-beating earnings of $1.36 per share for its April quarter last night as overall revenues rose 46% from last year to record $8.29 billion. Nvidia ( NVDA) - Get NVIDIA Corporation Report shares slumped lower Thursday after the chipmaker issued a muted near-term outlook for the sale of its gaming chips that took the gloss off a solid set of first quarter earnings.

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, ...

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. 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. Non-GAAP earnings per diluted share were $1.36, up 49% from a year ago and up 3% from the previous quarter. 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. - First-quarter Automotive revenue was $138 million, down 10% from a year ago and up 10% from the previous quarter. - First-quarter revenue was a record $3.62 billion, up 31% from a year ago and up 6% from the previous quarter. - First-quarter revenue was a record $3.75 billion, up 83% from a year ago and up 15% from the previous quarter. - First-quarter revenue was $622 million, up 67% from a year ago and down 3% from the previous quarter. NVIDIA (NASDAQ: NVDA) today reported record revenue for the first quarter ended May 1, 2022, of $8.29 billion, up 46% from a year ago and up 8% from the previous quarter, with record revenue in Data Center and Gaming.

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Nvidia's Omniverse enterprise software is being used by about 10% of the world's top 100 companies, like Amazon and PepsiCo . Automotive and Robotics revenue fell 10% year over year to $138 million, below the $143 million expected. Original equipment manufacturer (OEM) & Other revenue of $158 million dropped 52% year over year and missed the $193 million expected. Professional Visualization revenue rose 67% year over year to $622 million, short of the $631 million expected. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. Overall Data Center growth was driven by adoption of Nvidia's A100 GPU (graphics processing unit). Networking products are still supply constrained, but management sees this improving throughout the rest of the year Gaming revenue jumped 31% year over year to $3.62 billion, exceeding the $3.46 billion expected. The company expects operating expenses of $1.75 billion, other expenses of approximately $40, a tax rate of 12.5%, plus or minus 1%, and capital expenditures (capex )in the range of $400 million to $450 million. Revenue of $8.1 billion plus-or-minus 2%: This is below estimates of the aforementioned $8.4 billion but includes an estimated reduction of approximately $500 million related to Russia and the Covid lockdowns in China. The gaming business is expected to see a $400 million haircut and the impact to the data center business is expected to be approximately $100 million. Management said overall gaming end demand "remained solid" in the quarter but it was mixed by region, with the Americas strong but parts of Europe were soft due to Russia's war in Ukraine and China's hit due to Covid lockdowns. Revenue from hyperscale and cloud computing customers (think the Amazon , Microsoft , Alphabet 's Google, Alibaba 's of the world) more than doubled year over year. Based on the guide, analysts at Truist wrote in a note Wednesday evening that the implied earnings-per-share (EPS) outlook range is $1.19 to $1.32, which with a midpoint of $1.26 is below estimates of $1.36. Segment Q1 sales Data Center revenue soared 83% year over year to $3.75 billion, beating the $3.6 billion expected. Some of the industry's positive drivers in the last two years are the 100 million new gamers entering the PC industry, the use of PCs by people to connect with friends and become influencers, and more people using home PCs as a second workstation. Nvidia expects strong sequential sales growth in Data Center and Automotive to be more than offset by the sequential decline (in the teens on a percentage basis) of Gaming, which is also preparing to go through a new architectural transition later this year.