Why Nvidia Should Be In Your Portfolio Ahead Of Earnings

NVIDIA Corporation (NVDA) Information Technology – Semiconductors | Reports May 12, After Market Closes

Key Takeaways

The Estimize community is calling for earnings per share of 34 cents on $1.29 billion in revenue, 2 cents higher than Wall Street on the bottom line and $19 on the top

The company is expanding out of traditional PC gaming into data centers, automotives and visualization

Gaming still accounts for a majority of Nvidia’s revenue while automobiles are its fastest growing division.

What are you expecting for NVDA? Get your estimate in here!

Chipmaker, Nvidia is scheduled to report first quarter earnings tomorrow, after the market closes. The company is best known for its graphics cards found in PCs, but is also emerging as a major player in gaming, professional visualization, data center and automotive offerings. The combined four segments increased 26% last year and are expected to be a source of future growth. Nvidia’s deeper penetration in these rapidly growing markets has provided a major boost to earnings. The past 3 quarters featured large beats on both the top and bottom line, and tomorrow should be no different.

The Estimize community is calling for earnings per share of 35 cents on $1.29 billion in revenue, 2 cents higher than Wall Street on the bottom line and $19 million on the top. Compared to a year earlier this represents a 5% increase in earnings while sales are expected to rise 11%. Given Nvidia’s history of beating, it’s not surprising that the stock is a positive mover leading up and through earnings season. Currently, shares are up nearly 75% in the past 12 months.

Despite the continued slowdown in the PC market and a new focus on higher growth sectors, Nvidia’s bread and butter remains graphics cards or GPUs. The company is currently leaps and bounds ahead of its only competition, AMD, controlling almost 75% of the GPU market. This year Nvidia is set to release its newest graphics card which will be more powerful and cheaper. High end graphics cards provide Nvidia their highest margins, supported by demand from hardcore gamers.