Nvidia Stock Tops in Q3, But Zoom Stock Outperformed Tech Stocks
Nvidia stock price remains the S&P 500 top performer as its shares surged almost 76% during the third quarter. The investors’ confidence in the future fundamentals of Semi-conductor Company helped in adding to shares price gains. Nvidia has announced a $40B acquisition of SoftBank’s Arm chip unit.
The company’s robust financial performance is among the biggest factor behind investors’ confidence. Its second-quarter data center revenue hit a record level, and the revenue was up 54% from the previous quarter and jumped 167% from the past year period.
Its gaming revenue of $1.65 billion topped the consensus for $1.41 billion. Data Center remains the top revenue source. Its data center revenue came in at $1.75 billion.
“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. Mellanox grew sharply, driven by the need for high-speed networking in cloud data centers to scale-out AI services,”
says CEO Jensen Huang.
Nvidia stock price jumped 122% since the beginning of this year, accelerating the twelve-month gains to 200%. Nvidia stock price is currently trading around $522, down slightly from 52-weeks high of $580 a share.
On the other hand, Zoom stock outperformed the Nasdaq-100 index as the video communication company was among the biggest beneficiaries of the pandemic.
Zoom stock jumped 600% since the beginning of this year, thanks to sharp growth in subscribers and revenues. Its second-quarter revenue grew 355% from the past year period, with expectations that revenue growth will accelerate in the coming quarters.
“Organizations are shifting from addressing their immediate business continuity needs to support a future of working anywhere, learning anywhere, and connecting anywhere on Zoom’s video-first platform. At Zoom, we strive to deliver a world-class, frictionless, and secure communication experience for our customers across locations, devices, and use cases,”
said Zoom founder and CEO, Eric S. Yuan.