“We are gearing up for the largest wave of new products in our history with new GPU, CPU, DPU and robotics processors ramping in the second half. And Nvidia’s founder and CEO Jensen Huang primed the pump for that in a big way. However, what makes this company especially interesting for growth investors is what’s coming in the pipeline. In addition, during the quarter Nvidia returned $2.10 billion to shareholders through stock buybacks and dividends. The earnings and revenue beats alone warranted the subsequent rally in NVDA’s stock price. Considering the current conditions - inflation, continuing supply chain woes and shuttering of its Russian business - that performance was impressive. In its Q1 earnings announcement, Nvidia highlighted record quarterly revenue, including new quarterly records for the Data Center and gaming divisions. However, for those focused on a long-term growth investment, NVDA stock at current prices is a worthy portfolio addition. That weakness and a desire to park their money in safer havens are seeing many investors take a pass on Nvidia. In addition, the company says it will slow down hiring and move to control expenses.Īt this point, NVDA stock remains well off 2021 levels and is down 38% so far in 2022.
That was a big miss compared to the $8.54 billion analysts were looking for. In particular, citing a “challenging macro environment” the company issued revenue guidance of $8.1 billion for the current quarter. Nonetheless, that rally has lost steam several times, including last Friday, because not all news from the company was good. In fact, the Q1 numbers - which handily beat analyst expectations for both revenue and earnings - kicked off a rally for NVDA shares. After a long slide that saw Nvidia (NASDAQ: NVDA) stock lose 44% of its value over the course of just two months, the company’s first quarter of fiscal year 2023 earnings stopped the bleeding.
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