NVIDIA Corporation ($NVDA) Earnings (Q1 FY23)

 NVIDIA Corporation ($NVDA) Earnings and Opinion:


NVIDIA is a company in the Technology sector and operates in the Semiconductors industry. The company provides graphics, and compute and networking solutions internationally. NVIDIA was founded in 1993 and is currently headquartered in Santa Clara, California. The company was first traded on the stock market in 1999.

NVIDIA EPS and Revenue (Q1 FY23):

  • EPS of $1.36 beating expectations of $1.30
  • Revenue of $8.29B beating expectations of $8.09B
NVIDIA Q1 Highlights:
  • Quarterly revenue was a record
  • Revenue was up 46% Y/Y
  • EPS was up 49% Y/Y
  • Repurchase program of $15B initiated and to be completed by December 2023
  • Net income of $1.62B
Opinion:
NVIDIA is currently moving lower after reporting earnings after the market closed this afternoon. They had some solid beats on expectations in the EPS and revenue categories. Revenue grew by a big amount along with EPS as well on a year-over-year basis. NVIDIA was also able to grow on a quarter-over-quarter basis, which is a solid win due to the current economic challenges going on. They are growing rapidly and acquiring so many different components. It reminds me a lot of a Google type of business which starts to run all sorts of parts of business. NVIDIA is now appearing in so many different sectors and growing at sufficient rates in those categories too. The thing that is causing them to be put down right now is the outlook for the next quarter and rest of the fiscal year. Investors are so weary of tech companies right now that one little bad hint at something causes a whirlwind for the stock price. I see it as a big overreaction, because looking at the financials reported, it was a really solid quarter. In terms of stock performance, NVIDIA is down 48% over the past 6 months and losing a lot of steam. The valuations are very expensive with a P/E ratio of 43.56 and a P/S ratio of 15.78. However, they make up for the expensiveness in the fact that they are growing revenues at high rates still and are acquiring new parts of the business always. They currently have more cash than debt, so there’s nothing to worry about in that respected category. With solid ROA and ROE metrics, I find it extremely hard to pass up on an opportunity to buy into this company. I am a huge supporter of this company and put a lot of money into them. I am betting on them for the future and I like the diversification they are implementing into the business as well. The are just now getting into cryptocurrency mining as well, which could be a huge win for the company. Of course this may be a little biased because I love the company so much, but I would suggest buying in if you have the opportunity. The growth and upside opportunity for NVIDIA is endless.


*Information from NVIDIA, Yahoo Finance, Google, and CMLVIZ

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