Nvidia Stock Steady Despite Record Gaming Demand

Nvidia stock price continues to trade in the $530 range even though the chipmaker has reported record September quarter results. The pressure on the share price has been blamed on the broader stock market uncertainty amid rising virus infections and social distancing policies.

Despite the short-term volatility, the market analysts are anticipating sharp gains for Nvidia stock in the days ahead, driven by robust gaming and data center demand.

The September quarter results along with a stronger than expected December quarter outlook vindicates bull’s case.

Record revenues support Nvidia stock

The chipmaker has topped consensus revenue and earnings estimates by $310 million and $0.36 per share.

Its third-quarter revenue of $4.73 billion soared 57% from the past year period. Gaming segment revenue came in at a record level of $2.27 billion compared to the consensus for $2.06 billion. Moreover, the data center revenue grew 162% year over year to $1.90 billion.

The company also saw improvement in automotive and professional visualization sales compared to the June quarter this year.

“NVIDIA is firing on all cylinders, achieving record revenues in Gaming, Data Center and overall,”

said Jensen Huang, founder, and CEO of NVIDIA.

“The new NVIDIA GeForce RTX GPU provides our largest-ever generational leap and demand is overwhelming. NVIDIA RTX has made ray tracing the new standard in gaming. “We announced the NVIDIA DPU programmable data center processor, and the planned acquisition of Arm, creator of the world’s most popular CPU. We are positioning NVIDIA for the age of AI when computing will extend from the cloud to trillions of devices,”

he added.

The company expects fourth-quarter revenue in the range of $4.8 billion compared to the consensus for $4.43 billion.

Nvidia stock has more upside

The market analysts are optimistic about the extension bullish trend. Susquehanna has provided a price target of $610, indicating a significant upside from the current level of $530.

Wedbush analyst Matt Bryson has set a price target of $600. Nvidia stock price rose almost 128% since the beginning of this year, accelerating twelve months gains to 160%.