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Since NVIDIA (NVDA - Free Report) reported its Q4 earnings on February 16, with the beat-and-raise pattern we've come to know and love, analysts have raised their revenue and profit estimates enough to once again make the stock a Zacks #1 Rank.
NVIDIA delivered record quarterly revenue of $7.64 billion, up 53 percent from a year earlier, which propelled record fiscal-year revenue of $26.91 billion, up 61 percent.
Gaming, Data Center and Professional Visualization market platforms each achieved record revenue for the quarter and year. And company guidance was full of positive surprises, with Q1 revenue of $8.1 billion expected, vs. the then-current consensus projection of just $7.3 billion.
And just so we're clear: NVIDIA is not a "gaming" company. They make the high-powered GPU chipsets that not only make advanced gaming graphics possible but also feed the R&D of AI. I'll let the boss explain...
"We are seeing exceptional demand for NVIDIA computing platforms," said Jensen Huang, founder and CEO of NVIDIA. "NVIDIA is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics – some of today's most impactful fields.
"We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing," he said.
Unstoppable Demand for the King of AI
Based on this broad demand for one-of-a-kind computing and AI solutions, analysts raised this year's consensus revenue projection to $34.50 billion, representing 28% growth.
At the same time, the EPS consensus for this year rose 9% to $5.56, for a 25% projected profit advance.
While the stock will look expensive to value investors, as it trades at 43 times earnings and 17X sales, the role of NVIDIA as the "king of AI" hardware and software applications is undisputed and will fuel growth for many more years.
I've written dozens of articles about NVIDIA since I became aware of its GPU-driven "massively parallel architectures" in 2016. If you don't know what that means, check out this tutorial I did in 2017...
So I won't belabor any further my love for the company and Jensen Huang's ability to surround himself with the best engineering talent in the world.
Instead, I'll just put your attention on the future and the upcoming GPU Tech Conference from March 21-24. This is the semi-annual event where Jensen gets to show off their latest innovations and solutions for customers like Deloitte, Epic Games, Mercedes-Benz, Microsoft, Pfizer, Sony, Visa, Walt Disney, and Zoom.
They have to do this twice a year just to keep up with all the technology envelope-pushing they do. After Jensen's news-filled keynote there will be more than 900 sessions from 1,400 speakers, including some of the world’s top researchers and industry leaders in AI, high performance computing and graphics.
Registration is free and open now at www.nvidia.com/gtc. Huang's keynote will be live-streamed on Tuesday, March 22, at 8 a.m. Pacific time and available on demand afterward. Registration is not required to view the keynote. Watching the Wizard of AI present his latest wares is always a treat so don't miss it!
What's key about these conferences is that Jensen & Co. aren't just talking to C-suite suits. Their primary audience are the developers who use the CUDA (Compute Unified Device Architecture) hardware+software stack to create AI applications for every conceivable industry and task.
Here's a taste of what you will experience at GTC...
“As one of the world’s leading AI conferences, GTC provides a singular opportunity to help solve huge challenges and redefine the future for developers, researchers and decision-makers across industries, academia, business and government,” said Greg Estes, vice president of Developer Programs at NVIDIA. “There’s a mother lode of content and opportunities for attendees of all levels to deepen their knowledge and make new connections.”
This GTC will focus on accelerated computing, deep learning, data science, digital twins, networking, quantum computing and computing in the data center, cloud and edge. There will be more than 20 dedicated sessions on how AI can help visualize and further climate science.
Wall Street Analyst Reaction
Here were two analyst views that stood out after their recent quarterly update...
Piper Sandler analyst Harsh Kumar wrote that NVDA reported "flawless execution, nicely beat January quarter expectations, and provided strong April quarter guidance." The analyst says that outside of data center and gaming, there are "multiple, large, disruptive catalysts in the company's arsenal that can ignite growth and gross margins in the future." He believes software will provide the next leg of revenue growth and gross margin expansion. Kumar reiterates an Overweight rating on the shares with a $350 price target.
Rosenblatt analyst Hans Mosesmann reiterates his Buy rating and 12-month price target of $400 on Nvidia after the company beat expectations with its Q4 results, "as expected," and gave guidance that supports sustained accelerated broad-based demand. Nvidia "continues to destroy the notion of an end of the semiconductor cycle and sets the stage for a secular dynamic that we see as never seen in the history of semiconductors," said Mosesmann, who still views Nvidia as "the best-in-class AI play with several growth vectors."
I like what the Piper analyst says because the CUDA software stack is the driving force expanding into new industries and use applications, even as Datacenter overtakes Gaming as the primary revenue bucket.
And I like what the Rosenblatt analyst says about "a secular dynamic never seen in the history of semiconductors." That was the primary thesis of my 2017 vlog...
You can bet against chips on supply chain worries and the Russian invasion of Ukraine. But don't bet against NVDA. At least not until you attend the GTC so you know what your betting against.
Disclosure: I own shares of NVDA for the Zacks TAZR Trader portfolio.
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Bull of the Day: NVIDIA (NVDA)
Since NVIDIA (NVDA - Free Report) reported its Q4 earnings on February 16, with the beat-and-raise pattern we've come to know and love, analysts have raised their revenue and profit estimates enough to once again make the stock a Zacks #1 Rank.
NVIDIA delivered record quarterly revenue of $7.64 billion, up 53 percent from a year earlier, which propelled record fiscal-year revenue of $26.91 billion, up 61 percent.
Gaming, Data Center and Professional Visualization market platforms each achieved record revenue for the quarter and year. And company guidance was full of positive surprises, with Q1 revenue of $8.1 billion expected, vs. the then-current consensus projection of just $7.3 billion.
And just so we're clear: NVIDIA is not a "gaming" company. They make the high-powered GPU chipsets that not only make advanced gaming graphics possible but also feed the R&D of AI. I'll let the boss explain...
"We are seeing exceptional demand for NVIDIA computing platforms," said Jensen Huang, founder and CEO of NVIDIA. "NVIDIA is propelling advances in AI, digital biology, climate sciences, gaming, creative design, autonomous vehicles and robotics – some of today's most impactful fields.
"We are entering the new year with strong momentum across our businesses and excellent traction with our new software business models with NVIDIA AI, NVIDIA Omniverse and NVIDIA DRIVE. GTC is coming. We will announce many new products, applications and partners for NVIDIA computing," he said.
Unstoppable Demand for the King of AI
Based on this broad demand for one-of-a-kind computing and AI solutions, analysts raised this year's consensus revenue projection to $34.50 billion, representing 28% growth.
At the same time, the EPS consensus for this year rose 9% to $5.56, for a 25% projected profit advance.
While the stock will look expensive to value investors, as it trades at 43 times earnings and 17X sales, the role of NVIDIA as the "king of AI" hardware and software applications is undisputed and will fuel growth for many more years.
I've written dozens of articles about NVIDIA since I became aware of its GPU-driven "massively parallel architectures" in 2016. If you don't know what that means, check out this tutorial I did in 2017...
Get Your MPA in Deep Learning
So I won't belabor any further my love for the company and Jensen Huang's ability to surround himself with the best engineering talent in the world.
Instead, I'll just put your attention on the future and the upcoming GPU Tech Conference from March 21-24. This is the semi-annual event where Jensen gets to show off their latest innovations and solutions for customers like Deloitte, Epic Games, Mercedes-Benz, Microsoft, Pfizer, Sony, Visa, Walt Disney, and Zoom.
They have to do this twice a year just to keep up with all the technology envelope-pushing they do. After Jensen's news-filled keynote there will be more than 900 sessions from 1,400 speakers, including some of the world’s top researchers and industry leaders in AI, high performance computing and graphics.
Registration is free and open now at www.nvidia.com/gtc. Huang's keynote will be live-streamed on Tuesday, March 22, at 8 a.m. Pacific time and available on demand afterward. Registration is not required to view the keynote. Watching the Wizard of AI present his latest wares is always a treat so don't miss it!
What's key about these conferences is that Jensen & Co. aren't just talking to C-suite suits. Their primary audience are the developers who use the CUDA (Compute Unified Device Architecture) hardware+software stack to create AI applications for every conceivable industry and task.
Here's a taste of what you will experience at GTC...
“As one of the world’s leading AI conferences, GTC provides a singular opportunity to help solve huge challenges and redefine the future for developers, researchers and decision-makers across industries, academia, business and government,” said Greg Estes, vice president of Developer Programs at NVIDIA. “There’s a mother lode of content and opportunities for attendees of all levels to deepen their knowledge and make new connections.”
This GTC will focus on accelerated computing, deep learning, data science, digital twins, networking, quantum computing and computing in the data center, cloud and edge. There will be more than 20 dedicated sessions on how AI can help visualize and further climate science.
Wall Street Analyst Reaction
Here were two analyst views that stood out after their recent quarterly update...
Piper Sandler analyst Harsh Kumar wrote that NVDA reported "flawless execution, nicely beat January quarter expectations, and provided strong April quarter guidance." The analyst says that outside of data center and gaming, there are "multiple, large, disruptive catalysts in the company's arsenal that can ignite growth and gross margins in the future." He believes software will provide the next leg of revenue growth and gross margin expansion. Kumar reiterates an Overweight rating on the shares with a $350 price target.
Rosenblatt analyst Hans Mosesmann reiterates his Buy rating and 12-month price target of $400 on Nvidia after the company beat expectations with its Q4 results, "as expected," and gave guidance that supports sustained accelerated broad-based demand. Nvidia "continues to destroy the notion of an end of the semiconductor cycle and sets the stage for a secular dynamic that we see as never seen in the history of semiconductors," said Mosesmann, who still views Nvidia as "the best-in-class AI play with several growth vectors."
I like what the Piper analyst says because the CUDA software stack is the driving force expanding into new industries and use applications, even as Datacenter overtakes Gaming as the primary revenue bucket.
And I like what the Rosenblatt analyst says about "a secular dynamic never seen in the history of semiconductors." That was the primary thesis of my 2017 vlog...
The Technology Super Cycle
You can bet against chips on supply chain worries and the Russian invasion of Ukraine. But don't bet against NVDA. At least not until you attend the GTC so you know what your betting against.
Disclosure: I own shares of NVDA for the Zacks TAZR Trader portfolio.