Shares of NVIDIA Corporation (NASDAQ:NVDA) jumped by almost 8% during Monday’s session after the company was given a buy rating due to the bright prospect of the company’s data center sales revealed during its most recent quarterly earnings report. The company’s sales from its Gaming GPU and Professional Visualization also sent other analysts to upgrade their forecasts for the company’s stock.
Second Quarter Earnings
For the second quarter, Nvidia delivered an earnings of 92 cents per share on a revenue of $2.23 billion. This beat most consensus analyst estimates of a $1.96 billion revenue on earnings of 70 cents per share. However, Nvidia shares still plunged by as much as 6% during the after-hours trading last week following the release of the earnings report.
The company which has been one of the top tech stocks has been growing its business in many sectors including its gaming business along with its recent venture in data center and artificial intelligence.
Nvidia’s sales from its data center business have jumped by 175% from the same period last year to $416 million while Nvidia’s core gaming business jumped by 54% year over year supported by the success of Nintendo’s Switch console to which the company’s Tegra chips are being used. Analysts, however, expected the company’s data center revenue to come at around $423 million
Nvidia’s revenue from the gaming sector reached $1.19 billion while its sales from the Tegra department drove in $333 million alone. The company’s automobile department also rose humbly by 19% to $142 million in revenue.
Nvidia Stock Movement
Nvidia shares which have skyrocketed over the past twelve months by more than 150% traded 6% higher on Monday following a buy rating on the company’s stock. Nvidia shares fell by more than 5% last week following the release of positive second quarterly earnings. Shares of the company fell after most investors hoped for a revenue of $423 million for their data center business. The company’s target price then was cut from $190 to $180. Nvidia shares are now up by almost 8% during the most recent trading session after a buy rating.
Nvidia is also poised to get higher sales from its GPU gaming products this quarter due to the renewed video card demand which is being used recently for Bitcoin mining. Despite the rising video card prices in the past quarters, the demand also has been going up as more people turn to cryptocurrency mining which requires graphic cards.