Shares of chipmaker Nvidia (NASDAQ: NVDA) were set to tumble Friday, after the company posted weaker-than-expected guidance.
Its stock has had a hot run in 2018, rising 34%. But rather than run from the weakness, some traders view the selloff as an opportunity to buy.
Nvidia has rallied 149% since the beginning of May 2017. A trend line stretching from then to this August places a trend line at around $249.
The Santa Clara, California-based Nvidia reported revenue for the second quarter ended July 29, 2018, of $3.12 billion, up 40% from $2.23 billion a year earlier, and down 3% from $3.21 billion in the previous quarter.
GAAP earnings per diluted share for the quarter were $1.76, up 91% from $0.92 a year ago and down 11% from $1.98 in the previous quarter. Non-GAAP earnings per diluted share were $1.94, up 92% from $1.01 a year earlier and down 5% from $2.05 in the previous quarter.
Global esports revenue is expected to rocket 38% higher this year to total $906 million, according to Newzoo data. Industry revenue could balloon to $1.65 billion by 2021. Many high-end gaming PCs and other devices are powered by Nvidia's GeForce graphics processing chip.
"Growth across every platform – AI, Gaming, Professional Visualization, self-driving cars – drove another great quarter," said Jensen Huang, founder and CEO of NVIDIA. "Fueling our growth is the widening gap between demand for computing across every industry and the limits reached by traditional computing. Developers are jumping on the GPU-accelerated computing model that we pioneered for the boost they need."
Shares tumbled $9.13, or 3.6%, to $248.31.
