NVIDIA Corporation (NVDA) went up by $15.14 in the after-hours, to reach $307.75, at a volume of 5.66 million on November 17. During the active market session, the stock went down by $9.42, reaching $292.61 at the close. The day range for NVDA varied between $288.00 to $305.09, while the 52-week range is $115.67 to $323.10. Currently, the stock trades at market capital of $755.07 billion, with 2.5 billion outstanding shares. The stocks downtrend was reversed after the company posted its Q3 earnings results, which beat the expectations.
The tech giant, NVIDIA Corporation (NVDA) specialises in products and platforms for gaming markets, professional visualisation, data centre, and the automotive market.
NVDA’s Market Movement
Nvidia stock has gone up by a big 125% year to date and 53.7% over the past three months. The stocks’ great gain over the course of time can be attributed to the investor’s outlook for NVDA’s potential to dominate the metaverse. While the stock has gained great, it was in a downtrend on November 17, during market hours. This downtrend can be subjected to the hurdles the company faced in its new deal.
Nvidia had proposed a deal for acquiring Arm Holdings, which is a semiconductor chip designing company in the UK. Because of national security concerns and competition, the British government ordered an in-depth investigation of the deal. This news in addition to the big expectations for Q3 put the investors in a frenzy. Hence, the stock saw a fall during market hours on November 17th.
NVDA’s Third Quarter Earnings
On Wednesday, November 17, NVIDIA Corporation (NVDA) announced its third-quarter financial results for 2021. According to the results, NVDA produced record revenue of $7.10 billion in the third quarter of 2021, gaining a good 50% year over year. NVDA beat the consensus revenue estimate of $6.8 billion for the quarter. Moreover, the company also beat the consensus estimate for Data Centre revenue of $2.7 billion as it generated $2.94 billion. The Data Centre revenue went up by 55% year over year.
In addition, the non-GAAP earnings per diluted share for the third quarter of 2021 were $1.17, which showed an increase of 60% year over year. According to the consensus estimate, the company was expected an adjusted earning per share of $1.11. Hence, NVDA beat all its third-quarter expectations.
Future Outlook
Based on the growth in its data centre, NVDA also announced its outlook for the Q4 of 2022. According to the outlook, the company expects revenue of $7.40 billion with a possible 2% variation. Furthermore, the company also expects a non-GAAP gross margin of $67.0% with a possible variation of 50 basis points.
