Why NVIDIA Corporation (NASDAQ: NVDA) stock is going gangbusters today

Free $100 Forex No-Deposit Bonus

NVIDIA Corporation (NASDAQ: NVDA) stock surged over 8.1% on 16th August 2019 (as of 9:38 am GMT-4; Source: Google finance) after the company reported better than expected results for the second quarter of FY 19. The company has reported an unadjusted profit of $552 million compared to $1.1 billion, a year ago. The company has achieved sequential growth across the platforms.  Real-time ray tracing is the most important graphics innovation in a decade. Adoption has reached a tipping point, with NVIDIA RTX leading the way.

NVDA in the second quarter of FY 19 has reported the adjusted earnings per share of $1.24, beating the analysts’ estimates for the adjusted earnings per share of $1.15, as per Zacks Investment Research. The company had reported a 17 percent fall in the adjusted revenue to $2.58 billion in the second quarter of FY 19, beating the analysts’ estimates for revenue of $2.55 billion.

For the third quarter, the management expects revenues of $2.90 billion, plus or minus 2%. Adjusted gross margin is expected to be 62.5%, plus or minus 50 basis points. Adjusted operating expense is forecast to be approximately $765 million.

The company said it will pay the next quarterly cash dividend of $0.16 per share on September 20, 2019, to all shareholders of record on August 29, 2019.  It will resume repurchasing stocks after the completion of the recently announced acquisition of Mellanox Technologies, which is the first priority as far as capital spending is concerned. The regulatory approval process for the transaction is progressing as planned. It is expected to close by the end of this calendar year.

Moreover, NVDA has the company announced breakthroughs in language understanding that allow organizations to enable real-time conversational AI, with a record-setting performance in running training and inference on the BERT AI language model. Further, NVDA has supercharged its GPU lineup with GeForce® RTX 2060 SUPER™, GeForce RTX 2070 SUPER and GeForce RTX 2080 SUPER, delivering best-in-class gaming performance and real-time ray tracing.

Additionally, the company in its first full year, NVIDIA RTX ray tracing has emerged as the new industry standard in product design, architecture, effects and scientific visualization, with the support of more than 40 key applications, including eight introduced at SIGGRAPH. The company has rolled out a full range of Turing architecture-based Quadro GPUs for mobile workstations with global system providers.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.