The streak had to end. After NVidia (NASDAQ: NVDA) reported earnings, the stock fell 4.6% when markets digested the lower quarterly outlook. Once again, market participants have a short-term timeframe. Those who look at the overall growth story in NVidia will get rewarded.
NVidia reported an impressive 40% Y/Y in revenue growth. Q3’s revenue forecast fell a notch below the $3.34 billion. At $3.19 billion at the low-end of the range, the company’s performance is still signaling strong growth.
Datacenter grew 83% Y/Y and shows no sign of slowing.
Crypto’s slowdown may pull NVDA stock but the markets are irrational: sales to this mining sector are irrelevant. The company is set to release a new architecture called Turing. RTX will not only push NVDA’s market share ahead but it will also put AMD (NASDAQ: AMD) behind even further. Vega is still underwhelming and Polaris is a less favored choice over the NVDA graphics card line-up.
NVidia’s business does not rely on crypto, so much so that management did not even factor it in for its forecast. Analysts likely ignored this part of the market. Those who include it on the downside target revenue for NVidia are not properly valuing the company’s growth in data center, AI, and graphics.
NVDA’s stock chart showed a ‘double top at above $260. At $240 and below, investors may now watch the stock and look for an ideal entry point.
