Nvidia (NASDAQ:NVDA) is a California-based technology company that designs graphics processing units for the gaming and professional markets. Shares have climbed 21% in 2019 as of close on August 28. However, the stock has dropped 7.8% over the past month.
The company released its second-quarter 2019 results on August 16. Revenue dropped 17% on an annualized basis to $2.58 billion, but this still beat analyst expectations. Its largest segment, gaming, produced $1.31 billion in revenue which was down 27% on an annualized basis.
Nvidia’s full-year guidance puts it on track for a 9% annualized decline, falling short of analyst forecasts.
Nvidia has been plagued by supply issues in the first half of 2019, but the company says that some of these issues should be mitigated in the back half of the year. The popularity of the Nintendo Switch, which is one of many products containing Nvidia components, is expected to generate positive results going forward. It appears that the company has successfully passed through a period of turbulence, and we’re looking at normalization for the rest of 2019.
Like other tech stocks, Nvidia is a pricey option going by its technicals. It boasts a high price-to-earnings ratio of 36 and a price-to-book of 9.5.
Shares are still trading at the low end of its 52-week range. The company has seemingly regained its footing, but I don’t love the stock in this turbulent environment. I’m awaiting a more attractive entry point before jumping in.
