The company with the fun to say name NVDA 504.90 -15.72 -3.02% reported 2nd Quarter July 2019 earnings of $1.24 per share on revenue of $2.6 billion. The consensus earnings estimate was $1.14 per share on revenue of $2.6 billion.
The company said it expects third quarter revenue of $2.84 billion to $2.96 billion, and earnings of $1.48 to $1.66 per share. The current consensus earnings estimate is $1.52 per share on revenue of $2.97 billion for the quarter ending October 31, 2019. So a slight miss on revenue and a most likely win on earnings.
But the company is heading higher today because Nvidia Chief Financial Officer Collette Kress said that Nvidia’s finances had “normalized” in the second quarter after working through a “crypto hangover.” Due to crashes in cryptocurrencies crypto miners stopped buying Nvidia and AMD equipment. This wasn’t the only problem for the chip makers, but it was a very public one.
Data center (cloud) spending is expected to pick up next year, so we might see some slow growth for the remainder of 2019 and a pickup in 2020. With that being said, stocks are leading indicators, chips are in everything, and there are two players for GPUs.
And don’t forget, the robots are coming… Nvidia is the leading chip maker for AI.