Nvidia Stock Slips Despite an Earnings Beat and Strong Guidance

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The graphic chip giant has become the top semiconductor maker in the U.S., eclipsing Intel.

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Shares of

Nvidia

slipped in late trading Wednesday despite reporting strong financial results for its latest quarter ended. The chip maker also provided an impressive forecast for its current quarter ending in April.

Nvidia said revenue was $7.64 billion, up 53% from the year-ago quarter and above the October quarter, while adjusted earnings were up 69% to $1.32 a share. Wall Street analysts had expected revenue of $7.42 billion and adjusted profits of $1.23 a share. Under generally accepted accounting principles, the company earned $1.18 a share.

For the full fiscal year ended in January, the company posted revenue of $26.9 billion, up 61%, with adjusted profits of $4.44 a share, up 78%.

Despite the strong numbers, Nvidia shares were off 1.3% in late trading. The stock has risen 73% over the last 12 months.

“We are seeing exceptional demand for Nvidia computing platforms,” CEO and founder Jensen Huang said in a statement. “Nvidia is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics—some of today’s most impactful fields.” He added that the company is entering the new fiscal year “with strong momentum across our businesses and excellent traction with our new software business models.”

For the April quarter, Nvidia is projecting revenue of $8.1 billion, give or take 2%, with gross margins of 65.2% on a GAAP basis and 67% on a non-GAAP basis. That’s well above the Wall Street consensus revenue forecast of $7.3 billion. Analyst see adjusted profits of $1.19 a share in the quarter. The company noted that it will recognize a $1.36 billion charge in the quarter to reflect costs related to its terminated agreement to buy Arm from…

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