What's Happening With NVDA
Semiconductor maker NVIDIA (NVDA) will report its second-quarter numbers after the market close August 15 with the consensus calling for earnings of $1.14 per share, down from $1.94 during the same period last year. NVDA stock has risen 14.6% year to date.
NVDA was recently trading at $152.98 down $139.78 from its 12-month high and $28.52 above its 12-month low. InvestorsObserver’s Stock Score Report gives NVDA a 33 long-term technical score and a 18 short-term technical score. The stock has recent support above $140 and recent resistance below $180. Of the 28 analysts who cover the stock 17 rate it Strong Buy, 2 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 2 rate it Strong Sell, NVDA gets a score of 31 from InvestorsObserver’s Stock Score Report.
Semiconductors have struggled in the wake of the trade war. A prolonged trade war between the U.S. and China poses a serious threat to global growth, which in turn could lead to a big drop in chip demand. That is the fear on Wall Street and why NVDA stock has hovered in the lower end of its 52-week range for most of the year. After years of blistering growth, earnings growth has slowed at NVIDIA which was expected considering profits increased 56% per annum over the last five years. Looking ahead earnings are expected to rise at 12.5% per annum over the next five years, but analysts have priced in a 20.3% drop for the current year. The company has a strong earnings track record and the street expects another positive earnings surprise this quarter with a whisper number of $1.18 for the quarter. NVDA trades at 21 times future earnings and analysts remains bullish with an average price target of $193.29.
About NVIDIA Corporation
Nvidia is a leading designer of graphics chips that enhance the experience on computing platforms. The firm's chips are used in a variety of end markets, including high-end PCs for gaming, data centers, and automotive infotainment systems. In recent years, the firm has broadened its focus from traditional PC graphics applications such as gaming to more complex and favorable opportunities, including artificial intelligence and autonomous driving, which leverage the high-performance capabilities of the firm's graphics processing units.