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NVIDIA Stock Might Be Worth Your Attention Right Now

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Nvidia (NASDAQ:NVDA) stock fell 1% in after-hours trading on Thursday following its results for the first quarter of fiscal 2021. Notably, the quarter ended on April 26, 2020. The semiconductor company posted better-than-expected results in the first quarter.

In the first quarter, Nvidia reported revenue of $3.08 billion—up 38.7% YoY (year-over-year). The chipmaker reported an adjusted EPS of $1.80—up 104.5% YoY. Notably, Wall Street analysts expected Nvidia to post a non-GAAP EPS of $1.69 on total revenues of $3.00 billion.

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Nvidia’s Q1 earnings results

The sales from Nvidia’s data center segment rose 17.9% sequentially and 80.0% YoY to $1.14 billion. However, the data center segment’s sales beat analysts’ consensus expectation of $1.03 billion. The revenues from the gaming segment fell 10.2% sequentially but rose 26.9% YoY to $1.34 billion. The gaming segment’s revenues also beat analysts’ consensus expectation of $1.30 billion.

In the second quarter of fiscal 2021, Nvidia expects revenues of $3.65 billion plus or minus 2%. Wall Street analysts expected the semiconductor company to see sales of $3.25 billion. The company’s revenue outlook includes the impact of the Mellanox acquisition.

Nvidia CFO Colette Kress said, “COVID-19 created challenges in supply and demand. Early in the quarter, our partners’ supply chains were disrupted. Shelter-in-place resulted in closure of retail outlets and China iCafes, affecting sales of our gaming products.” The report added, “However, work from home, learn at home, and gaming drove a surge in e-tail demand. Automobile infotainment system demand and autonomous development infrastructure builds declined, and the impact is expected to continue for the next several quarters.”

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Analysts’ target price for Nvidia stock

Many analysts revised their target price for Nvidia stock after its first-quarter earnings results.

  • Cowen and Company increased its target price from $325 to $410.
  • Evercore ISI increased its target price from $345 to $400.
  • J.P. Morgan increased its target price from $305 to $405.
  • Rosenblatt Securities increased its target price from $340 to $400.
  • Citigroup increased its target price from $315 to $392.
  • Susquehanna increased its target price from $410 to $420.
  • Benchmark increased its target price from $320 to $410.
  • Deutsche Bank increased its target price from $300 to $315.
  • Mizuho increased its target price from $295 to $400.
  • Needham increased its target price from $360 to $400.
  • Raymond James increased its target price from $330 to $370.
  • Wedbush increased its target price from $340 to $420.
  • Wells Fargo increased its target price from $360 to $430.
  • Craig-Hallum increased its target price from $300 to $335.
  • Suntrust Robinson increased its target price from $327 to $384.

Nvidia is tracked by 41 Wall Street analysts. Among the analysts, 32 recommend a “buy,” seven recommend a “hold,” and two recommend a “sell.” Analysts’ mean target price on the stock is $365.75, which implies a 4.2% gain from the current level of $351.01.

Peer comparison

Advanced Micro Devices’ (NYSE:AMD) first-quarter adjusted EPS grew 200% YoY to $0.18. The company met analysts’ adjusted EPS estimate of $0.18. The company’s first-quarter revenue surged 40.4% year-over-year to $1.79 billion, which beat analysts’ estimate of $1.78 billion. Read Is AMD Stock a ‘Sell’ after Its Q1 Earnings? to learn more.

Intel’s (NASDAQ:INTC) first-quarter adjusted EPS grew 62.9% YoY to $1.45. The company beat analysts’ adjusted EPS estimate by 17 cents. The company’s first-quarter revenue surged 23.5% YoY to $19.83 billion, which beat analysts’ estimate of $18.7 billion. Read Is Intel Stock a ‘Sell’ after Its Q1 Earnings? to learn more.

Nvidia’s stock performance

Nvidia stock has risen close to 20% since the beginning of May. On Thursday, the stock closed at $351.01, which was 2.17% lower than its previous closing price, 3.44% lower than its 52-week high of $363.50, and 164.7% higher than its 52-week low of $132.60. The company’s market cap is $215.9 billion.

Based on Nvidia’s closing price on Thursday, it has reported returns of 9.3% in the last five trading days, 30.2% in the trailing one-month period, and 126.4% in the trailing 12-month period. The company has gained 49.2% since the beginning of 2020.

On Thursday, Nvidia closed 12% above its 20-day moving average of $313.53 and 26.6% above its 50-day moving average of $277.15. The company was also trading 31.3% above its 100-day moving average of $267.33.

Nvidia’s 14-day MACD is 31.22, which suggests an upward trading pattern. The company’s 14-day relative strength index score of 68.6 indicates that the stock is approaching overbought levels.

Intel and AMD have gained 3.6% and 19.2%, respectively, year-to-date.

Read Is Nvidia Stock a Smart Long-Term Buy? to learn more.

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