For the past three months, Nvidia reported revenue of $4.73 billion against $4.41 billion expected by analysts.
Nvidia Corporation (NASDAQ: NVDA) stock has slumped over 2% during Wednesday’s after-hours trading session to trade around $526.30. The slip in Nvidia stock comes despite the company reporting better than anticipated Q3 fiscal 2021 earnings results.
Notably, NVDA stock closed yesterday trading at $537.15, after gaining 0.05% during the day. Being an established multinational technology company especially during the pandemic, Nvidia stock has greatly benefited from the huge market reception.
According to the MarketWatch data analytics, Nvidia stock has had an outstanding performance in the past one year. Whereby they have added approximately 155.57%, 128.28%, and 10% in the past one year, year to date, and the last three months respectively. Nvidia has a market valuation of $331.64 billion with 617.71 million outstanding shares. In the past 52 weeks, Nvidia stocks have ranged between $180.68 and $589.07. Having been rated 39 times, Nvidia stock received an average of Over rating.
Apparently, with the coronavirus infection rate indicating a possible second wave of infection around the world before an effective vaccine is approved, Nvidia products might see an increase in demand. Primarily due to the fact that more people might opt to stay at home to avoid contracting the virus. As a result, Nvidia can deliver more gaming products and also other services to much higher demand.
For the past three months, Nvidia reported revenue of $4.73 billion against $4.41 billion expected by analysts. The company reported adjusted earnings per share of $2.91 against analysts’ expectations of $2.57 per share, according to Refinitiv. The company indicated that it set a new revenue record, which is up 57% in comparison to the same period in the prior year.
Notably, Nvidia noted that the increase in revenue was attributed to its computer and networking segment that shot 146% from last year’s $1.94 billion. In addition, the increase in revenue was bolstered by its graphics faction that experienced a 25% spike from last year to $2.79 billion.
Revenue collected from the gaming segment shot by 37% to $2.27 billion in the past three months. In its Q3 earnings report, Nvidia noted that its data center line reported $1.9 billion in sales. This reciprocated to a spike of 162% from last year’s, whereby it was attributed to higher demand in Ampere graphics chips.
The company also attributed the spike in revenue to its purchase of Mellanox, which closed earlier this year that contributed 13% to total company revenue and about a third of data center revenue.
However, the company indicated that it expects its data center revenue to drop in the current quarter due to market uncertainty. Notably, the company pointed out that Chinese customers are no longer buying Mellanox networking products.
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