NVDA stock

Nvidia stock has fallen about 11% over the past 12 months. Justin Sullivan/Getty Images. Nvidia's revenue forecast for the current quarter came in above ...

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Nvidia's stock popped 17% in after-hours trading after the company's Q4 results came in better than expected on the strength of its automotive division.

[ expected $6 billion](https://www.forbes.com/sites/digital-assets/2023/02/20/nvidia-investors-focus-on-the-future-after-rough-year/?sh=4484650c2953). More information on product launches and the company’s strategy towards AI is expected to be released during Nvidia’s developer conference in March, according to several analysts. The unit made $226 million in sales during the quarter, down 65% from last year and 4% below what Wall Street expected. [Nvidia’s](https://www.forbes.com/companies/nvidia/?sh=37e4d2981c85) stock popped 17% in after-hours trading after the company’s Q4 results came in better than expected on the strength of its automotive division. The division is home to the Nvidia Omniverse, the company's vision for an industrial metaverse that provides simulations for developing artificial intelligence-based robots and autonomous vehicles. Sales for the division came in at $294 million, 13% higher than forecasts.

Nvidia shares jumped Wednesday, as the graphics-chip specialist sold more gaming chips and forecast stronger revenue than Wall Street was expecting.

This downtick follows roughly 33% growth in 2022 and 26% growth in 2021,” Stifel analysts wrote in a preview of the report this week. Nvidia reported fourth-quarter net income of $1.41 billion, or 57 cents a share, compared with $3 billion, or $1.18 a share, in the year-ago period. Nvidia forecast first-quarter revenue of $6.37 billion to $6.63 billion, while analysts on average were estimating earnings of 85 cents a share on revenue of $6.31 billion for the first quarter. illustrates expectations for a 3% decline in spending from the top seven cloud-service providers, in aggregate, in 2023. “While we expect AI-focused investments to remain a priority and potentially escalate as competition heats up, we remain wary of expectations for significant slowing in overall data-center capex spending in 2023.” Adjusted earnings, which exclude stock-based compensation expenses and other items, were 88 cents a share, compared with $1.32 a share in the year-ago period. Gaming sales reached $1.83 billion, while analysts on average were expecting $1.59 billion, according to FactSet. Data-center sales rose 11% to $3.62 billion from a year ago, missing analysts’ average forecast of $3.85 billion. The new cloud-based offering will go beyond offering the higher level of computational abilities that Nvidia gear can provide, and include access to Nvidia software. Kress said data-center sales are expected to grow sequentially and year over year, “accelerating past Q1.” “As we scale, software standalone going forward, it will be a driver,” Kress told MarketWatch. has just gone through the roof over the last 60 days,” Huang said.

NVIDIA Corporation beat Q4 2022 estimates on both lines. Read more to see why I do not want to buy into NVDA stock at current prices.

But the performance wasn't great during the quarter -- revenues and profits dropped quite a lot, and the year-over-year decline will be substantial in the current quarter as well. The broad market is trading at around 17x forward earnings right now -- if Nvidia hits the 2029 EPS estimate and trades at 17x net profits at that time, its shares would drop to $180 over the next six years. But even when we take the $2.3 billion at face value, that gets us to around $9 billion in annualized profits -- for a company that is valued at around $550 billion, that's not a lot of profit. And that is perfectly fine, of course, as long as the valuation is appropriate for a solid business performance -- which isn't the case for Nvidia, however. This gets us to what I believe is the key issue for Nvidia's shares -- the high valuation. Even if Nvidia were to trade at 25x net profit in 2029, which would represent a premium valuation in absolute terms, shares would climb by just 18% over the next six years, to $265. Bulls might decide to focus on the expected improvement on a sequential basis, while bears might decide to focus on the worsening year-over-year performance. [AMD](https://seekingalpha.com/symbol/AMD)) has recorded a data center revenue growth rate of 42% during the fourth quarter -- around 4x the growth Nvidia recorded (AMD also recorded revenue growth of 16% for Q4, versus a steep revenue decline for Nvidia). As one of the most important suppliers of these GPUs, Nvidia is negatively impacted by this macro issue -- not only is it selling fewer GPUs to miners, but weakening demand has also hurt market prices for new and used GPUs, which also negatively impacts Nvidia's sales potential. As a result of the better-than-feared announcement, Nvidia's shares shot up to the $220s in after-hours trading, up 9% at the time of writing. But as consumers are now free to pursue other activities again, such as traveling, dining out, and going to concerts, demand for gaming equipment has fallen -- especially since many gamers still have modern or up-to-date equipment that they bought in the recent past. A 21% revenue decline never is good news, and it especially isn't good news when we are talking about a growth company that is trading at a pretty high valuation.

After the bell rings to bring today's market action to an end, Nvidia (NASDAQ:NVDA) will take its turn to deliver its latest quarterly statement.

(To watch Srivastava’s track record, Going by the $233.73 average target, a year from now, the shares are expected to surge ~13%. Elsewhere on the Street, most are also backing Nvidia’s case; with a total of 16 Buys, 4 Holds and 2 Sells, the stock claims a Moderate Buy consensus rating. Srivastava’s rating stays an Outperform (i.e., Buy). “Thematically,” says the 5-star analyst, “Nvidia has started to capture investor imagination on the first potentially big AI inference application in the Chatbot world: ChatGPT. As a leader in the space, Nvidia stands to benefit greatly from the increasing usage of AI, as noted by Rosenblatt 5-star analyst Hans Mosesmann.

Nvidia stock surged close to 9% after it reported FY Q4 2023 results, beating analyst expectations. Read our take on NVDA stock here.

( [DELL](https://seekingalpha.com/symbol/DELL)) to expand the use of AI for commercial purposes. Nvidia stock surged close to 9% after the company reported FY Q4 2023 results, beating analyst expectations with regards to both the top line and earnings. [Nvidia](https://seekingalpha.com/symbol/NVDA/valuation/metrics?source=content_type%3Areact%7Csection%3Amain_content%7Cbutton%3Abody_link) is valued at a one-year forward P/E of x67, which represents a more than 173% valuation premium versus the information technology sector. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. We are set to help customers take advantage of breakthroughs in generative AI and large language models. Furthermore, the company's operating expenses for the quarter are estimated to be around $2.53 billion and $1.78 billion for GAAP and non-GAAP, respectively. Moreover, the growth of Nvidia's data center business, up 11% YoY, is an early bullish signal that supports the potential for continued benefits from artificial intelligence software, such as ChatGPT and Microsoft Bing's AI chatbot. With that frame of reference, in the The division made significant progress during the year by enhancing the capabilities of Nvidia Omniverse Enterprise to allow teams to build connected 3D pipelines and develop large-scale 3D works more efficiently -- partnering with Lockheed Martin Corporation ( According to CEO Huang, Nvidia is set to generate significant revenue from services such as selling access to supercomputers and pre-trained AI models, potentially [soon] generating "hundreds of millions of dollars" in sales. Similarly, on the backdrop of both margin and revenue expansion, Nvidia's operating income for FY Q4 2023 jumped to $2.2 billion, as compared to $1.5 billion for Q3 2023 (up 45% QoQ). In terms of profitability, NVDA achieved noteworthy improvements in FY Q4 2023, with GAAP gross margin expanding to 66.1%, up from 56.1% in FY Q3 2023.

Nvidia (NVDA) AI is basically the only high-end artificial intelligence platform.

[Coterra Energy](/quotes/CTRA/) (CTRA) and [Pioneer Natural Resources](/quotes/PXD/) (PXD) deliver quarters that [surprised to the upside](https://www.cnbc.com/2023/02/22/coterra-pioneer-deliver-earnings-beats-even-as-dividends-are-lower.html), pushing their stocks higher. [Dow](/quotes/.DJI/) and the [S&P 500](/quotes/.SPX/) look to break their respective two-session and four-session losing streaks. A higher [Nasdaq](/quotes/.SPX/) close would be a back-to-back gain after a three-day losing run. [Wells Fargo](/quotes/WFC/) (WFC) did Wednesday night. [Better-than-expected quarter and guidance](https://www.cnbc.com/2023/02/22/nvidia-pops-after-strong-quarter-guidance-showing-why-the-stock-still-has-long-term-promise.html). Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. The stock up 6%. Just not enough earnings power here but going for growth. [Nvidia](/quotes/NVDA/) (NVDA) AI is basically the only high-end artificial intelligence platform. I swear they're allowed to make up whatever number they want as profits were caused by cost cuts. [Sign up for my Top 10 Morning Thoughts on the market email newsletter for free](https://www.cnbc.com/investingclub/) Guidance provided by Coterra and Pioneer echoed that of [Devon Energy](/quotes/DVN/) (DVN): softer production but higher capital expenditures in 2023.

Nvidia shares moved sharply up after the chipmaker's top and bottom line beat prompted a slew of bullish analyst calls.

And in an about-face, Goldman Sachs' Toshiya Hari upgraded Nvidia to a buy rating and set a $275 price target. Analysts responded positively both to Nvidia's results and to growth in its data center business, with a slew of reiterated or upgraded ratings coming after the report. OpenAI's ChatGPT has captured interest worldwide, allowing people to experience AI firsthand, showing what's possible with generative AI," CEO Jensen Huang said on a Wednesday call with analysts. Analysts are also [bullish on the company's](https://www.cnbc.com/2023/02/23/ai-is-the-next-big-growth-opportunity-for-nvidia-wall-street-says.html) AI vision. "AI adoption is at an inflection point. It forecast $6.5 billion in sales for the upcoming quarter.

Nvidia reported positive earnings, but that's not the only reason interest is rising. Here are the top investors betting on NVDA stock.

[NVDA](https://investorplace.com/stock-quotes/nvda-stock-quote/)). On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. As InvestorPlace contributor Joel Baglole [reports](https://investorplace.com/2023/02/7-high-growth-tech-stocks-to-keep-your-eyes-on/): [STT](https://investorplace.com/stock-quotes/stt-stock-quote/)): 97,703,214 shares. [BLK](https://investorplace.com/stock-quotes/blk-stock-quote/)): 179,820,516 shares. According to 13F filings, as of 2022 Q4, 2735 funds hold positions in Nvidia, an increase of more than 5% with 427 hedge funds. This makes for an increase of more than 200%. With that in mind, it’s no surprise that institutional investors are more committed to Nvidia than ever. As InvestorPlace contributor Ian Cooper recently speculated, the metaverse is “The stock had been as high as $230 a share in February. Yesterday, Nvidia [reported impressive earnings](https://www.cnbc.com/2023/02/23/nvidia-stock-up-12percent-on-earnings-ai-potential.html), including a beat on both the top and bottom lines. The chipmaker rose to market prominence as the metaverse boom of 2022 amid a new rush on [tech stocks](https://investorplace.com/industries/technology/).

Nvidia skyrocketed by more than 100% from its mid October bottom and runs higher in pre-market after posting earnings. Read why NVDA stock is now a sell.

Therefore, Nvidia is a sell here in the near term, but I will consider buying back in around the $180-160 level, and if the opportunity presents itself, I will back up the truck around the $150-140 range. I bought my first actual stock in a company when I was 20, and the rest, as they say, is history. Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. Therefore, the company trades at about 69 times TTM non-GAAP earnings and at a sky-high 132 times TTM GAAP EPS. Fortunately, my uncle was a successful commodities trader on the NYMEX, and I got him to teach me how to invest. However, even though Nvidia is an excellent company, I still need to like the stock. There still needs to be more clarity about the economy and pockets of Nvidia's business. Now, that's expensive, especially considering that we're discussing non-GAAP results and the risks and uncertainties that Nvidia and the broader economy face ahead. Nvidia finally bottomed in mid-October 2022 at around $110, right in the middle of my long-term buy-in range, and since then, its stock has skyrocketed by about 100%. Also, while the company beat consensus figures, the company reported massive drops in non-GAAP and GAAP EPS (mainly). However, we should consider that estimates were butchered over the last year, and it's no wonder that the company surpassed the depressed estimates. Nevertheless, as Nvidia's selloff picked up steam, I recognized that the bottom would likely arrive around [the $100-120 level](https://seekingalpha.com/mp/1129-the-financial-prophet/articles/5776627-nvidia-still-watching-for-buy-in-zone-100-120?hasComeFromMpArticle=true).

Today's instrument is the NVIDIA Corp.'s stock traded in NASDAQ exchange under the ticker NVDA. Looking at the NVDA's chart, we can see that it was la.

Block (SQ) stock surged 8% in Friday's premarket as the market got excited over the payments firm's mixed results. GBP/USD has extended its slide and dropped below 1.0950 in the American session on Friday. [Read more](https://www.fxstreet.com/news/block-earnings-sq-stock-pops-8-despite-mixed-quarter-202302241255) ETH shows a lack of bullish momentum after its new rally formed a local top. Gold price remains under bearish pressure and trades at its lowest level since late December near $1,810. [Read more](https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-could-sink-to-1-400-after-losing-this-crucial-support-floor-202302240652) [Block Earnings: SQ stock pops 8% despite mixed quarter](https://www.fxstreet.com/news/block-earnings-sq-stock-pops-8-despite-mixed-quarter-202302241255) Information presented herein is not to be construed as a solicitation or an offer to buy or sell any Financial Instrument or to participate in any trading strategy. The pair remains on track to post its lowest weekly close since early December. [GBP/USD News](https://www.fxstreet.com/news?q=&hPP=17&idx=FxsIndexPro&p=0&dFR%5BTags%5D%5B0%5D=GBPUSD) [Gold falls to fresh 2023-low near $1,810 as US yields regain traction](https://www.fxstreet.com/markets/commodities/metals/gold) [Gold News](https://www.fxstreet.com/markets/commodities/metals/gold) [Ethereum price hints at pullback as centralization risks are likely to emerge after Shanghai upgrade goes live](https://www.fxstreet.com/cryptocurrencies/news/ethereum-price-could-sink-to-1-400-after-losing-this-crucial-support-floor-202302240652) [EUR/USD News](https://www.fxstreet.com/news?q=&hPP=17&idx=FxsIndexPro&p=0&dFR%5BTags%5D%5B0%5D=EURUSD) [GBP/USD extends slide below 1.2000 on hot US PCE data](https://www.fxstreet.com/currencies/gbpusd) [EUR/USD stabilizes near 1.0550, looks to post weekly losses](https://www.fxstreet.com/currencies/eurusd)

Nvidia shares have soared over 41% since the start of 2023. Investors have rallied over the company's potential in AI. However ...

With an earnings release in a matter of days and expectations of further declines in consumer GPU revenue, its stock could slide to a more appealing price. In Q3 2022, data centers earned the largest portion of revenue, with the segment reporting a year-over-year revenue rise of 31% to $3.83 billion. While competitors like AMD and Intel suffered from the market's declines, Nvidia was hit the hardest thanks to its 88% market share in the consumer GPU market. Until the market recovers, knowing the best time to invest in Nvidia might be difficult. Rising inflation led to steep declines in consumer spending on tech, with worldwide shipments of graphic processing units (GPUs) falling 42% throughout the year. Investors have rallied as the company looks more likely to play a crucial role in the future of artificial intelligence (AI).

The business might have bottomed but Nvidia's stock is still expensive. Neil Rozenbaum talks through the company's fourth-quarter earnings.

[is on the list](https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&impression=08c70548-6572-4ee7-94a4-58507db6dc23&url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-eg%3Faid%3D8867%26source%3Disaeditxt0000450%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6313%26ftm_veh%3Darticle_pitch&utm_source=usa-today&utm_medium=feed&utm_campaign=article&referring_guid=36c099ef-0131-49b9-86bb-3cabb8e20445) -- but there are nine others you may be overlooking. Our award-winning analyst team has spent more than a decade beating the market. The Motley Fool has a [disclosure policy](https://www.fool.com/legal/fool-disclosure-policy/?utm_source=usa-today&utm_medium=feed&utm_campaign=article&referring_guid=36c099ef-0131-49b9-86bb-3cabb8e20445). The Motley Fool has positions in and recommends Nvidia. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. [Neil Rozenbaum](https://www.fool.com/author/20363/?utm_source=usa-today&utm_medium=feed&utm_campaign=article&referring_guid=36c099ef-0131-49b9-86bb-3cabb8e20445) has no position in any of the stocks mentioned.

The chip-design company could be approaching 'the strongest new-product cycles' in its history, says a UBS analyst. CEO Jensen Huang has seen ...

“Tactically, following the results investors can now buy the stock at the start of a datacenter ramp, with a strong (and roughly normalized) gaming trajectory.” The average share-price target is $238.09. “We remain very optimistic around the company’s longer-term opportunity and [its] positioning in its core markets, but are somewhat wary of the high valuation, particularly in light of a difficult macro backdrop,” he wrote. Arcuri wrote that UBS has “long said that NVDA is a product-cycle stock,” and it now is “on the cusp of what might be the strongest new-product cycles and [total addressable market] expansion in the history of the company.” “Given the run the stock has had we believe many were nervous into the print, but the results seem to bolster the set-up from here which seems good at this point,” Rasgon wrote. “In hindsight, we acknowledge that our decision to remain on the sidelines in anticipation of a pullback in the company’s fundamentals was wrong,” Goldman Sachs analyst Toshiya Hari wrote as he upgraded Nvidia’s stock to buy from neutral Thursday.

Nvidia (NASDAQ:NVDA) could be a winner in the artificial intelligence (AI) market this year. I am bullish on NVDA stock because Nvidia's management is ...

Therefore, if you’re bullish on the future growth of machine learning, consider a position in a current competitor and possible future dominator, Nvidia. Kress addressed the concerns of anyone wondering whether Nvidia will participate in the generative AI trend. Nvidia’s management is loud and proud in its support of the AI movement, including generative AI. She observed, “Generative large language models with over 100 billion parameters are the most advanced neural networks in today’s world.” Presumably, this is a reference to generative AI, which is now top-of-mind in the financial markets due to the popularity of OpenAI’s [ChatGPT](https://www.tipranks.com/compare-stocks/chatgpt) chatbot. Nvidia’s decent quarterly financial results are only a small part of the overall story. Analysts took note of Nvidia’s focus on AI and responded accordingly. [Nvidia’s Q4-2022 results](https://www.tipranks.com/stocks/nvda/forecast) versus the year-earlier quarter. [bottom line](https://www.tipranks.com/stocks/nvda/financials/income-statement), Nvidia reported $0.88 in non-GAAP earnings per diluted share. It’s definitely possible, as Nvidia still managed to exceed expectations and deliver a number of positive surprises. Following today’s news, [NVDA stock finished 14% higher](https://www.tipranks.com/stocks/nvda). I am bullish on NVDA stock because Nvidia’s management is taking machine learning and its profit potential seriously in 2023. Consequently, Nvidia’s still-fresh fourth-quarter 2022 earnings report provided a crucial look into the company’s plans for the future.