NVIDIA Corporation (NASDAQ: NVDA) stock rose over 5.3% on September 15th, 2017 (As of 11:11AM EDT; Source: Google finance) leading to a total rally of over 67.2% in this year to date.
The stock gained momentum after Jim Cramer said that above $174, a breakout in Nvidia could be near. He sees that the group is well positioned in the booming artificial intelligence, video games, robotics, self-driving cars or data centers. Moreover, analysts from Evercore ISI raised the stock’s price target from $180 to $250 with an Outperform rating. Analyst C.J. Muse is positive on the stock as artificial intelligence is gaining pace and sees that investor’s still severely underestimated the impact of AI and the size of its potential market.
During their Second Quarter of Fiscal 2018, the group reported a Record revenue rise of 56% yoy to $2.23 billion, against the same period last year. Management reported that NVIDIA GPU computing adoption is rising, driving by growth across their businesses. Datacenter revenue enhanced more than two and a half times. Rising number of car and robot-taxi companies are choosing the group’s DRIVE PX self-driving computing platform. Moreover Gaming is a gaining pace of entertainment, with group powering growing platforms – GeForce and Nintendo Switch. The group’s new Volta GPU, is the most complex processor ever built, delivering a 100-fold speedup for deep learning beyond our best GPU of four years ago. During this quarter, the group shipped Volta in volume to leading AI customers.
For their Datacenter business, the group started shipping NVIDIA® Tesla® V100 GPU accelerators, the first GPU based on the new Volta architecture. They unveiled new lineup of NVIDIA DGX™ AI supercomputers, with a large installation at Facebook while announced the NVIDIA GPU Cloud Platform, giving developers a comprehensive software suite for AI development. The group also partnered with VW and Baidu to bring AI deeper into their organizations.
For the third quarter of fiscal 2018, the group forecasts a revenue to be in $2.35 billion, plus or minus two percent. GAAP and non-GAAP gross margins are forecasted to be in the range of 58.6 percent and 58.8 percent, respectively, plus or minus 50 basis points.