Nvidia Stock: Breaking growth records this year?

Nvidia Corp. (NVDA) is a leading producer of graphics processing units (GPUs) for gaming, data centers, networking, automotive, and robotic industries. Nvidia stock once again came into the limelight after announcing strong financial results for the second quarter. Nvidia shares rose nearly 2 percent in the pre-market trading Thursday following the results.

Financial Results: Q2

Nvidia reported earnings of 94 cents per share for the three months ended August 1, significantly higher than 25 cents per share in the comparable period of 2020. Excluding items, the company earned $1.04 per share, ahead of the consensus forecast of $1.02 per share.

Total revenue came in at $6.51 billion, translating to a year-over-year surge of 68 percent. On the other hand, analysts were expecting Nvidia to post revenue of $6.33 billion. The company enjoyed growth across its key business segment.

Nvidia’s gaming revenue skyrocketed 85 percent to $3.05 billion, beating analysts’ average estimate of $2.98 billion. Moreover, revenue from the data center segment jumped 35 percent to $2.37 billion, exceeding the consensus forecast of $2.27 billion.

The chipmaker also issued its sales outlook for the third quarter. It expects revenue in the range of $6.66 billion to $6.94 billion for the current quarter, better than analysts’ average estimate of $6.57 billion.

Bottomline

Nvidia stock has surged more than 45 percent so far in 2021. The latest financial results and Q3 outlook indicate the rising demand for its product and services, especially in the gaming market. In addition, the company is also performing well in the cloud space, with leading cloud players relying on Nvidia’s GPUs. In short, the growth prospects of Nvidia stock look very bright.