Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  NVIDIA Corporation    NVDA

NVIDIA CORPORATION

(NVDA)
  Report
Delayed Quote. Delayed Nasdaq - 10/26 04:00:00 pm
525.65 USD   -3.30%
10:11aFacebook Moves Into Cloud Gaming
DJ
09:12aFacebook adds cloud gaming feature to its platform
RE
08:15aFacebook Moves Into Cloud Gaming
DJ
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Nvidia Has to Play This Game Perfectly -- Heard on the Street

share with twitter share with LinkedIn share with facebook
09/03/2020 | 08:15am EDT

By Dan Gallagher

The phrase "this time is different" can be a dangerous one in business. Fortunately for Nvidia Corp., it also appears to be accurate.

The chipmaker's last major product cycle for its graphics processors designed for videogaming was a letdown. The performance upgrade for the company's Turing family was considered disappointing relative to the previous cycle's boost -- especially at the higher prices Nvidia was demanding. And relatively few games at the time were using the ray-tracing technology that was the key feature of the Turing line.

To make matters worse, that upgrade came right around the popping of the cryptocurrency bubble in which "miners" were snapping up Nvidia's chips to handle the complex equations that are used to generate new units of currencies such as etherium. That inflated sales in the few quarters before the first Turing chips hit the market in late 2018, then hurt sales when miners later dumped those chips on the secondary market.

The experience proved costly in a couple ways. Nvidia's gaming revenue fell for four straight quarters following the launch, and its highflying stock shed more than half its value during the last three months of the year.

The road looks clearer for the company's newest gaming chips announced earlier this week.

The new family, known as Ampere, offers twice the computing performance of the previous generation, and many more games in the ecosystem have adopted ray-tracing -- including the blockbuster "Fortnite." Nvidia also kept the pricing down on the newest generation. Deutsche Bank analyst Ross Seymore notes that the midrange $500 version of the newest Ampere line offers the same performance as the $1,000 version of the Turing lineup. And this time, there is no crypto-bubble to thwart the supply chain and skew comparisons.

That has led Nvidia to project record videogame-related revenue for its fiscal third quarter ending in October. The forecast calls for a 25% jump from the second quarter, which would amount to a little over $2 billion in revenue for that segment. Analysts expect Nvidia's gaming revenue to surge 28% for the full fiscal year ending in January. Some of that will come from the growing sales of the popular Nintendo Switch console, which uses a central processor from Nvidia. But the Ampere chips are expected to be the main driver, with Stacy Rasgon of Bernstein predicting a "monster gaming cycle" for Nvidia.

Nvidia can afford nothing less. The company's data-center business has grown quickly and made the company a darling on Wall Street, but videogaming remains the company's largest segment, accounting for 47% of its total revenue for the trailing 12-month period ended July. The stock had already surged 127% for the year before its gaming announcement early Tuesday and has picked up another 7% since. That has made Nvidia the second-largest company on the PHLX Semiconductor Index by market value, giving the never-cheap stock a multiple of 58 times forward earnings -- 55% above its valuation ahead of the last gaming cycle.

At this level, another gaming reset would be painful.

Write to Dan Gallagher at dan.gallagher@wsj.com

 


Stocks mentioned in the article
ChangeLast1st jan.
DEUTSCHE BANK AG -0.99% 8.04 Delayed Quote.17.39%
NINTENDO CO., LTD. 0.11% 55090 End-of-day quote.25.29%
NVIDIA CORPORATION -3.30% 525.65 Delayed Quote.123.40%
share with twitter share with LinkedIn share with facebook
All news about NVIDIA CORPORATION
10:11aFacebook Moves Into Cloud Gaming
DJ
09:12aFacebook adds cloud gaming feature to its platform
RE
08:15aFacebook Moves Into Cloud Gaming
DJ
10/23Covid-19 Continues to Boost and Bust S&P 500 Companies
DJ
10/23Intel's Cloud Thickens -- Heard on the Street
DJ
10/22SoftBank Group restarts dividend as finances stabilise
RE
10/22Intel's margins tumble as customers shift to cheaper chips, shares slide 10%
RE
10/22SoftBank Group restarts dividend as finances stabilise
RE
10/22Intel Hit as Consumers Flock to Lower-Cost Laptops, Datacenter Chips -- 2nd U..
DJ
10/22Intel Hit as Consumers Flock to Lower-Cost Laptops, Datacenter Chips -- 2nd U..
DJ
More news
Financials (USD)
Sales 2021 15 799 M - -
Net income 2021 3 645 M - -
Net cash 2021 6 230 M - -
P/E ratio 2021 91,9x
Yield 2021 0,12%
Capitalization 336 B 336 B -
EV / Sales 2021 20,9x
EV / Sales 2022 17,5x
Nbr of Employees 13 775
Free-Float 61,6%
Chart NVIDIA CORPORATION
Duration : Period :
NVIDIA Corporation Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends NVIDIA CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 40
Average target price 565,12 $
Last Close Price 543,61 $
Spread / Highest target 28,8%
Spread / Average Target 3,96%
Spread / Lowest Target -44,8%
EPS Revisions
Managers
NameTitle
Jen-Hsun Huang President, Chief Executive Officer & Director
Debora Shoquist Executive Vice President-Operations
Colette M. Kress Chief Financial Officer & Executive Vice President
William James Dally Chief Scientist & Senior Vice President-Research
Tony Tamasi Senior Vice President-Content & Technology
Sector and Competitors
1st jan.Capitalization (M$)
NVIDIA CORPORATION123.40%335 795
TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED35.95%408 694
INTEL CORPORATION-19.47%197 524
BROADCOM INC.17.94%150 766
QUALCOMM INCORPORATED46.07%145 411
TEXAS INSTRUMENTS16.89%137 655