NVIDIA share price: what’s the outlook as stock rallies after Q2 results
Last week, the US-based graphics chip maker released its second quarter results that beat analysts’ expectations and helped its stock rally more than 11% in the days that followed.
NVIDIA reported its second-quarter (Q2) earnings after market close on Thursday last week, with the company’s results beating analysts’ expectations.
That is not to say that the results were impressive, with the graphics chip maker seeing revenue decline by 17% to $2.58 billion compared with the same period a year ago, while earnings per share (EPS) slipped 36% to $1.24.
However, analysts had expected to the situation to be a lot worse, with the company’s EPS able to beat analysts’ consensus forecast of $1.14 per share.
Better-than-expected Q2 results boost NVIDIA shares
When markets on Friday, NVIDIA saw its share price climb more than 7% to close at $159.56 a share. The company’s share price saw similar gains at the start of this week, with its stock gaining a further 7% on Monday, closing at $170.78 a share – though ending Tuesday’s session a touch lower at $167.87.
Things are certainly looking brighter for the company this year, with its share price up 23% on a year-to-date basis. However, over the last 12 months the US-based chip maker has seen its stock lose a third of its value, with it trading as high as $253 a share this time last year.
Back in the game
Looking ahead the company to its third quarter, NVIDIA expects to generate revenue of $2.9 billion, which represents an 8.8% decline on a year-over-year basis, but a 12.4% increase on the previous quarter.
Its sales will be driven primarily by its supercharged graphics processor units (GPUs) lineup which includes the GeForce RTX2060 SUPER, RTX 2070 SUPER and RTX 2080 SUPER. All of which offer real-time ray tracing, a rendering method that is considered the holy grail of graphics technology due to its ability to create lifelike light and shadows
‘Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way,’ NVIDIA CEO and Founder Jensen Huang said.
’NVIDIA accelerated computing momentum continues to build as the industry races to enable the next frontier in artificial intelligence, conversational AI, as well as autonomous systems like self-driving vehicles and delivery robots,’ he added.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
