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Tue, June 6 at 7:00PM ET

Nvidia Corporation Worth $2.3 Billion More Overnight! (NVDA)

Nvidia Corporation (NVDA) stock owners are jumping for joy this morning. Or if they’re not, they should be. Shares of the semiconductor company are soaring on Friday, rocketing 12% higher after reporting stellar first-quarter earnings and revenue.

Nvidia Corporation Worth $2.3 Billion More Overnight! (NVDA)

Source: via Nvidia

The swift gains in NVDA stock took the value of the company to more than $21 billion, adding $2.3 billion to its market capitalization overnight.

Let’s take a look at what’s driving Nvidia shares, now up 20% year-to-date and 90% in the last year.

NVDA Stock: Growth Across the Board

The semiconductor-maker saw revenue jump 13% from the same period last year to $1.3 billion, beating the $1.27 billion consensus. Adjusted earnings per share also topped expectations, coming in at 46 cents vs. an expected 32 cents.

Further serving to send NVDA stock skyward was the company’s boosted guidance for the fiscal second quarter: Nvidia sees revenue of $1.35 billion (plus or minus 2%) in Q2, better than the $1.28 billion midpoint figure Wall Street had been looking for. CEO Jen-Hsun Huang highlighted a few reasons why it’s so great to be an NVDA stock owner these days:

“We are enjoying growth in all of our platforms — gaming, professional visualization, datacenter and auto. Accelerating our growth is deep learning, a new computing model that uses the GPU’s massive computing power to learn artificial intelligence algorithms. Its adoption is sweeping one industry after another, driving demand for our GPUs.”

In other words, if you’re worried about the impending rise of the machines and Skynet taking over the world, well, you might as well buy yourself some NVDA stock. At least that way you’ll make some nice money before the end of days.

Nvidia is also engaged in a capital return program aiming at returning $1 billion to shareholders through NVDA stock buybacks and dividends. In the first fiscal quarter the company began a $500 million accelerated share repurchase agreement and dished out $62 million in dividends.

As a company, it’s clear that Nvidia is firing on all cylinders. The only thing I would caution investors about when it comes to NVDA stock is to not rush in simply because the Q1 earnings release was full of sexy buzzwords like “artificial intelligence” and “virtual reality.”

Nvidia shares trade at a pretty healthy premium to the market due to its recent earnings growth and the fact that it’s at the forefront of some sexy, buzzy industries. After today’s gains, NVDA stock trades at 37 times trailing earnings and 27 times forward earnings. That’s pretty frothy.

All in all: Great quarter, but it’s hard to imagine there won’t be a better entry point for NVDA stock sometime later this year.

As of this writing, John Divine did not hold a position in any of the aforementioned securities. You can follow him on Twitter at @divinebizkid or email him at

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