NVIDIA Corporation - Defying the odds?
This has been quite a surprise as most semiconductor companies have been edgy on their upcoming forecasts.
So, what actually happened?
1. YoY drop on FY basis, but better quarter QoQ
Based on a YoY basis, revenue was flat. But in terms of margins, gross margins were down 8.0 pts, while operating income and net income was down by 58% & 55% respectively.
It does look gloomy from that perspective, but on a QoQ basis, we see an uptick in revenue, while gross margins are up by 9.7 pts.
2. Better than expected revenue by certain market platform
Now knowing that YoY-wise things have gone down, investors would want to gauge whether an uptick occurs in Q4'23.
QoQ-wise, overall platform growth is up by 2%, with gaming, professional visualization, automotive, and OEM & others all showing positive upticks. The only underperformer was Data Center, down 6%, due to reduced sales in China.
3. Bullish FY 2024 outlook propping up the sentiments
The icing on the cake would definitely be the positive Q1'24 outlook.
Revenue is expected to be USD 6.5 billion, which is a QoQ growth. This shows that there is no downturn at least for the next quarter for Nvidia.
GAAP and non-GAAP gross margins are to be 64.1% and 66.5%. That signifies a 70 bps improvement, hardly a margin compression.
Expense is projected to drop from USD 2.58 billion to USD 2.53 billion. So that's yet another plus point.
No wonder share prices popped.
Question is, is it time to buy Nvidia stock?
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Ixy The Cat : Horrible results and yet the stock goes up. A lot of people going to get burned.
GANGSTER : ,
InvestUncle Ixy The Cat : to the moon, irrational market!!
shy Cheetah_0241 : I do not see any answer about “that was done before the drop”. My options were selling off as people were experiencing fomo. High IV so I revived premium premium. I notice the usual big mouths that have to put there opinion on everything like we really give a s*** about there opinions were quite leading up to earnings. Usually they are pumping or taking it down. It is obvious the position they held at the time. This time it was different. Not a word on the streets. Do you think that company keeps all the details we have to wait for under lock and key. Hedge funds and politicians knew, check unusual option volume leading up to the release. I wish moomoo would step there game up with the options I have to use tasty and rhood of all places to place trades that fit my trade style. With moo moo the want you trading with margin, no thank you. I would rather be on the winning side of the trade I don’t mind putting up collateral =max loss. I opened a call credit spread when they first started multi leg strategies. Soon as it was opened they margin called me for having naked shorts I contacted customer support so someone could explain what the long call was for since they knew more then I did about the spread. The person that I spoke to was friendly and all but had no clue of what a option contract was much less a bull call spread..
shy Cheetah_0241 : When I asked them so what were they going to do about it liquidate my account? I had opened it that day and if closed it it would be a day trade I just got of pdt restrictions so be my guest my trade was +120% at time of margin call? I told them I would close it in the next few days and if they felt liquidating my account was necessary be my guest. They were super nice I couldn’t even be mad I just asked them to ask the back room to catch up on option strategies there is classes online. They didn’t liquidate they just left that annoying margin call warning on and they relabeled my position properly a spread. Not a naked short call. when the trade hit max profit I closed short leg held long and sold it a couple days after for more then the hole trade if I wanted to put 5000 in my account I would I am still not going to use house money. I like my odds better selling options if you know you know and if you do know you should check out OptionStrat. I just found it the other day it is just a calculator and optimizer software with free 7day I made 10k this week with NVDA using that tool rhood has never gave me any problem about putting any trade I want they just hold max loss. Moomoo if you read this you want massive new users work a deal with optionstrat or something close. Some of use do not care about what our come on expiration day is we got out that with a profit instead of holding watching it turn on us. Any one that got this far I’m not sure how you did but thanks for listning to my Ted talk and good luck. Back room at moomoo the strategy of the week going into Monday will be the jade lizard. Y’all should put me on pay roll and I will teach you a new one every week