NVIDIA Corporation (NASDAQ:NVDA) should be smiling from ear to ear today after the graphics chips maker reported a blowout October 2016 quarter and issued strong January 2017 guidance. NVDA reported revenue of $2 billion, which was a record for the company and beat Consensus of $1.69 billion. NVDA is seeing continued growth trends into the Jan-17Q and is guiding revenue to $2.10 billion, compared to consensus estimate of $1.69 billion.
NVIDIA shares reacted well to the positive earnings, jumping nearly 25% to $84.57.
“We had a breakout quarter – record revenue, record margins and record earnings were driven by strength across all product lines,” said Jen-Hsun Huang, founder and chief executive officer, NVIDIA. “Our new Pascal GPUs are fully ramped and enjoying great success in gaming, VR, self-driving cars and datacenter AI computing.
“We have invested years of work and billions of dollars to advance deep learning. Our GPU deep learning platform runs every AI framework, and is available in cloud services from Amazon, IBM, Microsoft and Alibaba, and in servers from every OEM. GPU deep learning has sparked a wave of innovations that will usher in the next era of computing,” he said.
On the ratings front, NVIDIA stock has been the subject of a number of recent research reports. In a report released today, Barclays analyst Blayne Curtis upgraded NVDA to Hold, with a price target of $72, which implies a downside of 9% from current levels. Separately, on the same day, Mizuho’s Vijay Rakesh reiterated a Buy rating on the stock and has a price target of $80.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Blayne Curtis and Vijay Rakesh have a yearly average return of 8.7% and 24.0% respectively. Curtis has a success rate of 64% and is ranked #300 out of 4200 analysts, while Rakesh has a success rate of 71% and is ranked #18.
Sentiment on the Street is mostly bullish on NVDA stock. Out of 23 analysts who cover the stock, 13 suggest a Buy rating , 9 suggest a Hold and one recommends to Sell the stock. The 12-month average price target assigned to the stock is $76.32, which represents a slight downside potential from current levels.
NVIDIA Corp. is a visual computing company, connecting people through computer graphics. It is engaged in creating graphics chips, which is used in personal computers. The company operates through two segments: Graphics Processing Unit and Tegra Processor. The Graphics Processing Unit segment includes sales of the company’s GeForce discrete and chipset products that supports desktop and notebook PCs plus license fees from Intel and sales of memory products. The Tegra Processors segment provides processors that deliver superior visual and multimedia experience on tablets, smart phones and gaming devices while consuming minimal power.