Categories Earnings, Technology

NVIDIA stock surges on Q1 earnings beat aided by a rebound in the gaming market

NVIDIA Corporation (NVDA) surprised investors with an earnings beat in the first quarter resulting in the stock surging above 5% after the bell. The strong earnings growth was aided by a rebound in the gaming market resulting in higher GPU sales. Revenue came in line with estimates.

Adjusted earnings came in at $0.88 per share, an increase of 9 cents compared to $0.79 per share expected by the street. However, this is much lower than $2.05 EPS reported last year.

Revenue fell 31% to $2.2 billion primarily impacted by lower GPU sales compared to the prior year period. But the top line numbers came in line with estimates. Last quarter, the company guided Q1 revenues of $2.20 billion, plus or minus 2%.

Commenting on the rebound in the first quarter, CEO Jensen Huang said: “NVIDIA is back on an upward trajectory. We’ve returned to growth in gaming, with nearly 100 new GeForce Max-Q laptops shipping.”

NVIDIA Corporation (NVDA) reports Q1 2020 earnings

Gaming Market Rebound

It’s a no-brainer that the high-end GPUs used by the gamers has been the money spinner for NVIDIA. Sequentially, gaming market sales grew 10.5%, which is a good sign for investors as the increase in GPU chip sales would bring back the mojo to the chipmaker.

NVIDIA graphics processing units (GPU) demand tapered off due to muted demand from cryptocurrency miners which has piled up huge inventories. In order to clear the inventory, the company lowered its prices for its high-end GPUs which were used for bitcoin mining and gaming.

Strong Q1 results should come as a relief for the company and investors as the company has been facing multiple headwinds since November 2018 due to weaker demand for its graphics cards resulting in muted top and bottom line numbers.

Q2 Outlook

Looking ahead, for the second quarter, revenue is anticipated to come in at $2.55 billion, plus or minus 2%. Adjusted gross margins are expected to be 59.5%, plus or minus 50 basis points. Analysts are expecting Q2 revenue at $2.54 billion and adjusted EPS of $1.11.

The chipmaker’s stock has recovered 29% since late December where it touched a 52-week low level of $124. However, when comparing to today’s market price, shares have plunged 45% since last October when it was trading at $292 levels.

Powering Data Center

In March this year, NVIDIA acquired Israeli-based chipmaker Mellanox Technologies for $6.9 billion, which is the biggest deal done till date. The buyout is expected to augment its data center offerings. The company clinched the deal from Intel which was also on the race to buy Mellanox. This acquisition would give a fillip to the top line in the near future.

Peer Performance

Last month, Intel (INTC) reported flat revenues and a modest increase in adjusted earnings. The company’s results were hurt by weak demand from the data center and memory divisions. However, the stock fell 9% post the announcement as the fiscal year outlook failed to impress the street.

NVIDIA’s rival Advanced Micro Devices (AMD) reported better-than-expected numbers, but its gaming segment saw a significant drop in sales, which explains the demand weakness the industry is facing. However, AMD’s Q2 outlook was positively backed by improved demand expected in the remaining period of 2019.

Tackling Headwinds

When it comes to headwinds for the rest of the year, US-China trade wars, data center performance and increasing competition from AMD would be impacting NVIDIA. The GPU-chip pioneer has a tough task to tackle these issues to sustain growth for the rest of the year.

Get access to timely and accurate verbatim transcripts that are published within hours of the event

Most Popular

INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues

Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came

Riding the AI wave, Nvidia looks set to stay on the high-growth path

After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on

Target (TGT): A look at some of the challenges faced by the retailer in 3Q24

Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and

Comments

  1. Pingback: Arie Baisch
  2. Pingback: Beverly Bultron
  3. Pingback: ABCD 1
  4. Pingback: super car show
  5. Pingback: MILFCity
  6. Pingback: Make my essay
  7. Pingback: Write my essay
  8. Pingback: valentine gift
  9. Pingback: binance
  10. Pingback: แทงบอล
  11. Pingback: Click Here
  12. Pingback: Click Here
  13. Pingback: rush dresses 2022
  14. Pingback: Click Here
  15. Pingback: Click Here
  16. Pingback: Click Here
  17. Pingback: aplikasi judi slot
  18. Pingback: Click Here
  19. Pingback: Click Here
  20. Pingback: Click Here
  21. Pingback: Click Here
  22. Pingback: Click Here
  23. Pingback: Click Here
  24. Pingback: Click Here
  25. Pingback: Click Here
  26. Pingback: Click Here
  27. Pingback: Click Here
  28. Pingback: Click Here
  29. Pingback: Click Here
  30. Pingback: Click Here
  31. Pingback: Click Here
  32. Pingback: Click Here
  33. Pingback: moveit studio
  34. Pingback: Click Here
  35. Pingback: Click Here
  36. Pingback: Click Here
  37. Pingback: Click Here
  38. Pingback: Click Here
  39. Pingback: Click Here
  40. Pingback: Click Here
  41. Pingback: Click Here
  42. Pingback: Click Here
  43. Pingback: Click Here
  44. Pingback: Click Here
  45. Pingback: Click Here
  46. Pingback: Click Here
  47. Pingback: Click Here
  48. Pingback: Click Here
  49. Pingback: Click Here
  50. Pingback: Click Here
  51. Pingback: Click Here
  52. Pingback: Click Here
  53. Pingback: Click Here
  54. Pingback: Click Here
  55. Pingback: Click Here
  56. Pingback: Click Here
  57. Pingback: Indobetslot
  58. Pingback: Click Here
  59. Pingback: Click Here
  60. Pingback: Click Here
  61. Pingback: Click Here
  62. Pingback: Click Here
  63. Pingback: Click Here
  64. Pingback: Click Here
  65. Pingback: Click Here
  66. Pingback: Click Here
  67. Pingback: Click Here
  68. Pingback: Click Here
  69. Pingback: Click Here
  70. Pingback: Click Here
  71. Pingback: Click Here
  72. Pingback: Click Here
  73. Pingback: Click Here
  74. Pingback: Click Here
  75. Pingback: Click Here
  76. Pingback: Click Here
  77. Pingback: Click Here
  78. Pingback: Click Here
  79. Pingback: Click Here
  80. Pingback: domain-name
  81. Pingback: domain-names
  82. Pingback: yoga pants
  83. Pingback: top startup books
  84. Pingback: Google reviews
  85. Pingback: 2023 Books
  86. Pingback: find people
  87. Pingback: online memorial
  88. Pingback: dying
  89. Pingback: memorial
  90. Pingback: IRA Empire
  91. Pingback: Chirurgie Tunisie
  92. Pingback: vn88, slot
  93. Pingback: MBA in FUE
  94. Pingback: Critical thinking
  95. Pingback: Vortex
  96. Pingback: Radiography
  97. Pingback: Computer Science
  98. Pingback: Credit Hour System
  99. Pingback: ghaziabad escorts
  100. Pingback: pandemic
  101. Pingback: binario led
  102. Pingback: tirage vertical
  103. Pingback: Fiverr Earn
  104. Pingback: Fiverr Earn
  105. Pingback: Fiverr Earn
  106. Pingback: Fiverr Earn
  107. Pingback: Fiverr Earn
  108. Pingback: Hooled luce led
  109. Pingback: fiverrearn.com
  110. Pingback: TLI
  111. Pingback: dallas frenchie
  112. Pingback: clima para hoy
  113. Pingback: clima
  114. Pingback: fiverrearn.com
  115. Pingback: fiverrearn.com
  116. Pingback: fiverrearn.com
  117. Pingback: isla mujeres
  118. Pingback: jute vs sisal rug
  119. Pingback: blogging
  120. Pingback: Yo.fan approval
  121. Pingback: bikini
  122. Pingback: future university
  123. Pingback: slot online
  124. Pingback: what is seo
  125. Pingback: Piano moving
  126. Pingback: Piano disposal
  127. Pingback: FUE
  128. Pingback: FUE
  129. Pingback: FiverrEarn
  130. Pingback: FiverrEarn
  131. Pingback: FiverrEarn
  132. Pingback: FiverrEarn
  133. Pingback: Coach
  134. Pingback: FiverrEarn
  135. Pingback: partners
  136. Pingback: Political Theory
  137. Pingback: Football
  138. Pingback: FiverrEarn
  139. Pingback: FiverrEarn
  140. Pingback: FiverrEarn
  141. Pingback: FiverrEarn
  142. Pingback: FiverrEarn
  143. Pingback: live sex cams
  144. Pingback: live sex cams
  145. Pingback: live sex cams
  146. Pingback: FiverrEarn
  147. Pingback: FiverrEarn
  148. Pingback: FiverrEarn
  149. Pingback: FiverrEarn
  150. Pingback: FiverrEarn
  151. Pingback: FiverrEarn
  152. Pingback: landscape
  153. Pingback: FiverrEarn
  154. Pingback: FiverrEarn
  155. Pingback: neuropure legit
  156. Pingback: cheap sex cams
  157. Pingback: fullersears.com
  158. Pingback: live sex cams
  159. Pingback: frt trigger
  160. Pingback: 늑대닷컴
  161. Pingback: One Peace AMV
  162. Pingback: nangs near me
  163. Pingback: superslot
  164. Pingback: allgame
  165. Pingback: 918kiss
  166. Pingback: หวย24
  167. Pingback: pg slot
  168. Pingback: carte uno reverse
  169. Pingback: 25-06 ammo
  170. Pingback: sicarios madrid
  171. Pingback: itsMasum.Com
  172. Pingback: Bokeo Thailand
  173. Pingback: itme.xyz
  174. Pingback: MasumINTL.Com
  175. Pingback: ItMe.Xyz
  176. Pingback: ItMe.Xyz
  177. Pingback: escrrr
  178. Pingback: cgl
  179. Pingback: crter
  180. Pingback: almbro
  181. Pingback: wbnva
  182. Pingback: webflw
  183. Pingback: crtlnk
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top