Nvidia Corporation (NASDAQ: NVDA) gained nearly 10% in extended hours after reporting market-beating results for its fourth financial quarter.
Shareholders are also cheering the company’s encouraging guidance for the future.
Nvidia expects its revenue to fall between $6.37 billion and $6.63 billion in the current quarter. In comparison, analysts were at $6.31 billion. Reacting to its on Yahoo Finance, Will Summerlin (Analyst at Ark Venture) said:
AI is really the driver for Nvidia’s future and they’ve defined themselves as the market leader. With that said, we think a lot of the upside in Nvidia may be priced in [because] there’s a lot of competition coming.
Nonetheless, he’s convinced the AI compute market will continue to grow over the next five to ten years.
Wall Street’s consensus “overweight” rating on NVDA suggests you should buy Nvidia stock here.
Data-centre sales missed expectations by $230 million this quarter despite an 11% annualised growth. Gaming sales increased 16% sequentially to $1.83 billion – well ahead of Street estimates.
Earlier this week, Nvidia signed a 10-year deal with Microsoft (find out more) that may help further boost its gaming sales moving forward. Summerlin added:
As AI evolves and increases the productivity of workers, will give people more leisure time, much of which could be spent on gaming. So, certainly part of our thesis.
For the year, Nvidia stock is now up more than 55%.
The post Nvidia issues upbeat guidance: ‘a lot of upside may be priced in’ appeared first on Invezz.