Nvidia Stock Steady After Record Q2 Revenue
Nvidia stock price gained a lot of momentum in the past few months on strong gaming and data center revenue. The shares of the one of the largest semiconductor company soared close to 20% in the last month alone, extending the year to date gains to 100%
The record second-quarter revenue of $3.70 billion grew almost 50% from the past year period. The revenue growth is driven by a 167% year over year increase in data center revenue.
Mellanox acquisition also contributed to second-quarter revenue growth. Its gaming revenue came in at $1.65 billion, up 26% from the past year period. The second-quarter revenue also increased by 26% from the previous quarter.
“Adoption of NVIDIA computing is accelerating, driving record revenue and exceptional growth,” said Jensen Huang, founder, and CEO of NVIDIA. “Growth in GeForce gaming accelerated as gamers increasingly immerse themselves in realistic virtual worlds created by NVIDIA RTX ray tracing and AI.
Although its earnings per share dropped on a year over year basis, earnings grew 10% from the previous quarter. Its second-quarter adjusted gross margin stood around 66%, in-line with guidance and up from the 64.5% consensus estimate.
“Our new Ampere GPU architecture is sprinting out of the blocks, with the world’s top cloud service providers and server makers moving quickly to offer NVIDIA accelerated computing,” Jensen Huang added.
Nvidia stock price is among the best performers so far this year. Its shares are currently trading around an all-time high of $490.
The marker analysts are seeing more upside potential for Nvidia stock. Susquehanna provided a price target of $540, expecting robust demand for the Ampere gaming GPUs in the following months.
Oppenheimer provided a price target of $500, seeing strong future fundaments amid data center and AI. Wells Fargo also appears bullish over the future fundamentals. The firm has provided a price target of $500.