Nvidia surged 9% ahead of its earnings day. Is now a good time for Nvidia investors?
What's the first word that comes to mind when you think of Nvidia?
GPU? Jensen Huang (and his leather jacket)? Or Metaverse? Intel\AMD?![]()
GPU? Jensen Huang (and his leather jacket)? Or Metaverse? Intel\AMD?
$NVIDIA(NVDA.US$ , one of the most closely watched darlings in the stock market, rose 125% last year on huge chip demand.
However, the entire market was spooked by the rate hikes this year, with the high-flying tech sector taking the biggest hit. The $Nasdaq Composite Index(.IXIC.US$ is stuck in a correction, with Nvidia down nearly 30% from its all-time high in November.
Interestingly, Nvidia surged 9.18% before the earnings release date.
Is a good time to follow Nvidia? You may have more clues on this question after its Q4 earnings report, which will be published after the market close on Wednesday.
Recap: Nvidia's Q3 Earnings Surprise
Nvidia reported Q3 revenue of $7.103 billion, up 50.3% year-over-year, marking the sixth consecutive quarterly record high.
Non-GAAP net profit of 2.973 billion US dollars, a year-on-year increase of 62.1%, a record high for sixth consecutive quarters.
Company's Q4 Guidance
Q4 revenue is expected to be $7.4 billion, up 48% year over year.
How to read a company's earnings report?
How to read a company's earnings report?
Core business: growth, growth, growth
New business: potential. Does it have any new initiatives? Is it an industry with great potential or an upward trend?
Core business is the foundation of a company's present while new initiatives may imply a company's future potential and possibility.
Most investors' first impression of Nvidia is that of a gaming graphics chip company (GPU). However, AI data centers are also where Nvidia's real value lies, which are empowering the future meta universe.
Data center revenue in Q3 was 2.936 billion, up 54.5% yoy (game business revenue of $3.221 billion in Q3, up 41.8% yoy), eight consecutive quarters of record highs. It accounted for 41.3% of Nvidia's Q3 total revenue.
Some analysts said broad market pressures could still weigh on short-term results, but limited long-term impact given its leadership in data centers and AI cloud.
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Moomoo Learn OP : Some analysts said broad market pressures could still weigh on short-term results, but limited long-term impact given $NVIDIA (NVDA.US)$ leadership in data centers and AI cloud.
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What’s your opinion
Imranm20 : Nvidia is the most innovative company in its industry with a diverse and state of the art product portfolio backed by smart distribution network. They are an important player in driving technology innovation and making things possible in Metaverse and AI
Mr Trecherous : Sentient Bro To Me
MONDAY86 : $NVIDIA (NVDA.US)$ Of course it's a good company, but it's also a company with good prospects. However, now, due to market reasons, the entire technology stock market has been affected. In a situation where the overall market is not stable, I still don't feel like acting recklessly. Of course it's OK to go long on dips, but you'll have to keep holding it for a long time, because in the short term, I don't feel like there's much room to rise. At best, it's just a matter of always trading sideways. I'm thankful that I don't go down too much
Ahlec : now it's down 4%
Ang Jackson : yes, I think now IS a good time for investors.
102829382 : EV/EBIT of more than 70 is hard for me to swallow , but in view of the good financial health and high fair value awarded by most analysts. it is a good buy for me around 200