We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nvidia (NVDA) Stock Rises After AMD Reports Best Quarter in 7 Years
Read MoreHide Full Article
Shares of Nvidia (NVDA - Free Report) gained more than 0.5% through early morning trading hours Thursday, avoiding a sector-wide tech selloff spurred by Facebook and moving higher on the back of solid earnings from rival AMD (AMD - Free Report) .
AMD reported adjusted earnings of 14 cents per share on $1.76 billion in revenue, surpassing estimates on the top and bottom line. GAAP net income came in at $116 million, or 11 cents per share, compared with a loss of $42 million, or 4 cents per share, in the prior-year quarter.
These results marked AMD’s most profitable quarter in seven years, with the graphics-chip maker successfully outperforming expectations in both its Computing and Graphics and Enterprise, Embedded and Semi-Custom business segments (also read: Advanced Micro Tops Q2 Earnings and Revenue Estimates).
One key product behind this growth was AMD’s Epyc data-center graphics processing unit (GPU). During the company’s earnings conference call, Chief Executive Lisa Su said sales of Epyc were growing very quickly, even though the business is still relatively small. Su also said that AMD plans to re-invest “heavily” in the Epyc business to promote further growth over the next four to eight quarters.
Interestingly enough, the growth of Epyc might actually spook some Nvidia investors, as data centers have been a key market for the AMD rival recently. Nvidia likely still has quite the lead over AMD in terms of data-center GPU market share, but it certainly would not desire to forfeit much of that lead in the near future.
Nevertheless, investors were comfortable lifting shares of Nvidia higher in the wake of AMD’s report because these results also point to continued strength throughout the broader GPU market, which spells good news for Nvidia.
Nvidia and AMD will always be fighting for larger slices of the graphics pie, but if specific GPU businesses which are important to both companies, such as gaming, continue to expand, that pie is getting bigger for everyone.
This is especially interesting for Nvidia as the company gears up to release its latest gaming GPU line, the “Turing” GeForce GTX Series 11. While Nvidia has not yet confirmed any details of the Turing series, rumors suggest that the firm could be readying a release date as early as August 30 for the first wave of the Series 11 gaming GPUs.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Nvidia (NVDA) Stock Rises After AMD Reports Best Quarter in 7 Years
Shares of Nvidia (NVDA - Free Report) gained more than 0.5% through early morning trading hours Thursday, avoiding a sector-wide tech selloff spurred by Facebook and moving higher on the back of solid earnings from rival AMD (AMD - Free Report) .
AMD reported adjusted earnings of 14 cents per share on $1.76 billion in revenue, surpassing estimates on the top and bottom line. GAAP net income came in at $116 million, or 11 cents per share, compared with a loss of $42 million, or 4 cents per share, in the prior-year quarter.
These results marked AMD’s most profitable quarter in seven years, with the graphics-chip maker successfully outperforming expectations in both its Computing and Graphics and Enterprise, Embedded and Semi-Custom business segments (also read: Advanced Micro Tops Q2 Earnings and Revenue Estimates).
One key product behind this growth was AMD’s Epyc data-center graphics processing unit (GPU). During the company’s earnings conference call, Chief Executive Lisa Su said sales of Epyc were growing very quickly, even though the business is still relatively small. Su also said that AMD plans to re-invest “heavily” in the Epyc business to promote further growth over the next four to eight quarters.
Interestingly enough, the growth of Epyc might actually spook some Nvidia investors, as data centers have been a key market for the AMD rival recently. Nvidia likely still has quite the lead over AMD in terms of data-center GPU market share, but it certainly would not desire to forfeit much of that lead in the near future.
Nevertheless, investors were comfortable lifting shares of Nvidia higher in the wake of AMD’s report because these results also point to continued strength throughout the broader GPU market, which spells good news for Nvidia.
Nvidia and AMD will always be fighting for larger slices of the graphics pie, but if specific GPU businesses which are important to both companies, such as gaming, continue to expand, that pie is getting bigger for everyone.
This is especially interesting for Nvidia as the company gears up to release its latest gaming GPU line, the “Turing” GeForce GTX Series 11. While Nvidia has not yet confirmed any details of the Turing series, rumors suggest that the firm could be readying a release date as early as August 30 for the first wave of the Series 11 gaming GPUs.
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>