NVIDIA (NVDA) Stock: Soaring On Strong Earnings


NVIDIA Corporation (NASDAQ: NVDA) is having an overwhelmingly strong day in the market today, and for good reason. The company reported its earnings for the fourth quarter and full year, blowing away expectations with regard to both the top and bottom line. Of course, this led to excited investors and massive gains in the value of the stock. Today, we’ll talk about what we saw from earnings, what we’re seeing from NVDA as a result, and what we’ll be watching for with regard to the stock ahead.

NVDA Soars On Strong Earnings 

As mentioned above NVIDIA Corporation is having an overwhelmingly strong day in the market today after reporting its earnings for the fourth quarter and full 2017 year. Here’s what we saw from the report:

Fourth Quarter Results 

  • Earnings Per Share – In terms of earnings per share, NVDA did overwhelmingly well. During the fourth quarter, it was expected that the company would generate earnings in the amount of $1.17 per share. However, the company blew these expectations away, reporting earnings in the amount of $1.78 per share.
  • Revenue – Revenue also proved to be a big hit for NVDA. During the fourth quarter, analysts expected that the company would produce revenue in the amount of $2.69 billion. However, the company actually reported revenue in the amount of $2.91 billion. Not only did this figure blow expectations out of the water, it showed strong 34% year-over-year growth.

2017 Results 

  • Revenue – When it comes to full year revenue, the figure proved to be overwhelmingly positive for NVIDIA Corporation. During the year, the company generated revenue in the amount of $9.71 billion. That’s a 41% year over year gain.

In a statement, Jensen Huang, founder and CEO at NVDA, had the following to offer:

We achieved another record quarter, capping an excellent year… In a powerful sign of our progress, attendees at NVIDIA’s GPU Technology Conferences reached 22,000 up tenfold in 5 years, as software developers working in AI, self-driving cars, and a broad range of other fields continue to discover the acceleration and money-saving benefits of our GPU computing platform. 

Industries around the world are racing to incorporate AI. Virtually every internet and cloud service provider has embraced our Volta GPUs. Hundreds of transportation companies are using our NVIDIA DRIVE platform. From manufacturing and healthcare to smart cities, innovators are using our platform to invent the future.

What We’re Seeing From The Stock 

As investors and traders, one of the first lessons we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. After all, investors are investing for growth and this earnings report showed incredible growth in the fourth quarter and throughout the year 2017. So, it’s no surprise to see that the stock is making a run for the top. At the moment (8:40), NVDA is trading at $239.00 per share after a gain of $21.48 per share or 9.87% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on NVDA. In particular, we’re interested in following the story surrounding the company’s continued growth as various sectors choose their products as a first in line option. We’re also watching the growth of the AI and cryptocurrency spaces as these are overwhelmingly important to the company. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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