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.
Robust Data-Center Demand to Aid NVIDIA's (NVDA) Q3 Earnings
Read MoreHide Full Article
NVIDIA Corporation’s (NVDA - Free Report) third-quarter fiscal 2021 results, scheduled for a Nov 18 release, are likely to reflect benefits from stellar demand for cloud computing and data centers.
The company’s fate is tied to its data-center segment, which accounts for a bulk of NVIDIA’s revenues. Robust year-over-year and sequential growth in data-center revenues in the last reported quarter, along with management's upbeat guidance for the soon-to-be-reported quarter, raises our optimism around this segment.
Notably, the Zacks Consensus Estimate for the data-center segment's fiscal third-quarter revenues is pegged at $1.92 billion, indicating a surge of 164% year on year and 11.7% sequentially.
Click here to know how the company’s overall fiscal third-quarter performance is anticipated to have been.
Data-Center Business Likely to Have Aided in Q3
NVIDIA’s fiscal third-quarter performance is anticipated to have benefited from strength in its data-center business on the growing adoption of cloud-based solutions amid the coronavirus pandemic-led global lockdown.
The work-and-learn-from-home wave is stoking demand for cloud storage. Furthermore, the lockdown has boosted the usage of online and e-commerce services globally. Therefore, data-center operators are enhancing their capacities to accommodate the demand spike for cloud services.
The data-center business presents a solid growth opportunity for the company. As more and more businesses are shifting to cloud, the need for datacenters is surging. This is likely to have positively impacted the company’s quarterly performance. Increase in Hyperscale demand and growing adoption in the inference market are anticipated to have been tailwinds as well.
The rising adoption of Conversational AI among hyperscale customers is likely to have been a key driver during the period in discussion. NVIDIA considers Conversational AI to be a powerful catalyst for the company in both training and inference. Also, the increasing adoption of Natural Language Processing by cloud players is likely to have been an upside during the fiscal third quarter.
Further, growing adoption of the company’s T4 GPU in public clouds makes us optimistic this earnings season. Solid public cloud deployments and higher demand for AI video analytics applications are driving demand for its T4 GPUs. Last September, Amazon’s (AMZN - Free Report) cloud computing arm, AWS, announced general availability of the T4 globally, following the T4 rollout on Alphabet’s (GOOGL - Free Report) Google Cloud platform earlier in 2019.
Preferred by the data-center operators, NVIDIA’s GPUs are likely to have helped the company grab a larger market space during the August-October period. Their impact on the quarterly performance remains to be seen.
The long-term earnings growth rate for Arrow is currently pegged at 8.5%.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Image: Shutterstock
Robust Data-Center Demand to Aid NVIDIA's (NVDA) Q3 Earnings
NVIDIA Corporation’s (NVDA - Free Report) third-quarter fiscal 2021 results, scheduled for a Nov 18 release, are likely to reflect benefits from stellar demand for cloud computing and data centers.
The company’s fate is tied to its data-center segment, which accounts for a bulk of NVIDIA’s revenues. Robust year-over-year and sequential growth in data-center revenues in the last reported quarter, along with management's upbeat guidance for the soon-to-be-reported quarter, raises our optimism around this segment.
Notably, the Zacks Consensus Estimate for the data-center segment's fiscal third-quarter revenues is pegged at $1.92 billion, indicating a surge of 164% year on year and 11.7% sequentially.
Click here to know how the company’s overall fiscal third-quarter performance is anticipated to have been.
Data-Center Business Likely to Have Aided in Q3
NVIDIA’s fiscal third-quarter performance is anticipated to have benefited from strength in its data-center business on the growing adoption of cloud-based solutions amid the coronavirus pandemic-led global lockdown.
NVIDIA Corporation Price and Consensus
NVIDIA Corporation price-consensus-chart | NVIDIA Corporation Quote
The work-and-learn-from-home wave is stoking demand for cloud storage. Furthermore, the lockdown has boosted the usage of online and e-commerce services globally. Therefore, data-center operators are enhancing their capacities to accommodate the demand spike for cloud services.
The data-center business presents a solid growth opportunity for the company. As more and more businesses are shifting to cloud, the need for datacenters is surging. This is likely to have positively impacted the company’s quarterly performance. Increase in Hyperscale demand and growing adoption in the inference market are anticipated to have been tailwinds as well.
The rising adoption of Conversational AI among hyperscale customers is likely to have been a key driver during the period in discussion. NVIDIA considers Conversational AI to be a powerful catalyst for the company in both training and inference. Also, the increasing adoption of Natural Language Processing by cloud players is likely to have been an upside during the fiscal third quarter.
Further, growing adoption of the company’s T4 GPU in public clouds makes us optimistic this earnings season. Solid public cloud deployments and higher demand for AI video analytics applications are driving demand for its T4 GPUs. Last September, Amazon’s (AMZN - Free Report) cloud computing arm, AWS, announced general availability of the T4 globally, following the T4 rollout on Alphabet’s (GOOGL - Free Report) Google Cloud platform earlier in 2019.
Preferred by the data-center operators, NVIDIA’s GPUs are likely to have helped the company grab a larger market space during the August-October period. Their impact on the quarterly performance remains to be seen.
Zacks Rank and Another Key Pick
Currently, NVIDIA carries a Zacks Rank #2 (Buy).
A similar-ranked stock in the broader technology sector is Arrow Electronics, Inc. (ARW - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The long-term earnings growth rate for Arrow is currently pegged at 8.5%.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>