NVIDIA Corporation

NVIDIA Corporation (NASDAQ: NVDA) is a full-stack computing infrastructure company. The Company accelerates computing to help solve the computational problems. The Company’s segments include Compute & Networking and Graphics.

Recent Business and Financial Updates

• NVIDIA's Strong Financial Performance and Corporate Actions: NVIDIA (NASDAQ: NVDA) reported a record quarterly revenue of USD 26.0 billion for the first quarter ending April 28, 2024, marking an 18% increase from the previous quarter and a significant 262% surge compared to the same period last year. GAAP earnings per diluted share rose to USD 5.98, a 21% increase from the previous quarter and a remarkable 629% increase from a year ago, while non-GAAP earnings per diluted share reached USD 6.12, reflecting a 19% increase from the previous quarter and a substantial 461% rise from a year ago.
• Forward Stock Split and Dividend Increase: The company announced a ten-for-one forward stock split, effective June 7, 2024, aimed at enhancing stock accessibility for both employees and investors. This initiative involves an amendment to NVIDIA’s Restated Certificate of Incorporation, resulting in a proportional increase in the number of shares of authorized common stock. Additionally, NVIDIA raised its quarterly cash dividend by 150%, from USD 0.04 per share to USD 0.10 per share of common stock. Post-split, the increased dividend translates to USD 0.01 per share and will be distributed on Friday, June 28, 2024, to all shareholders of record on Tuesday, June 11, 2024.
• Revenue Outlook and Corporate Achievements: For the second quarter of fiscal 2025, NVIDIA anticipates revenue to reach USD 28.0 billion, plus or minus 2%. GAAP and non-GAAP gross margins are expected to be 74.8% and 75.5%, respectively, with GAAP and non-GAAP operating expenses projected at approximately USD 4.0 billion and USD 2.8 billion, respectively. Furthermore, the company achieved notable progress across various sectors since its previous earnings announcement.
• Data Center: NVIDIA recorded a record first-quarter revenue of USD 22.6 billion, surging by 23% from the previous quarter and an impressive 427% from a year ago. Key developments included the introduction of the NVIDIA Blackwell platform, designed to facilitate AI computing at trillion-parameter scale, and the launch of the Blackwell-powered DGX SuperPOD™ for generative AI supercomputing. Moreover, NVIDIA unveiled Quantum and Spectrum™ X800 series switches optimized for trillion-parameter GPU computing and AI infrastructure, alongside the release of NVIDIA AI Enterprise 5.0 featuring NVIDIA NIM inference microservices.
• Gaming and AI PC: First-quarter Gaming revenue amounted to USD 2.6 billion, a decrease of 8% from the previous quarter yet an 18% increase from a year ago. NVIDIA introduced new AI gaming technologies and performance optimizations at GDC, along with additional support for RTX technology in blockbuster games such as Star Wars Outlaws and Black Myth Wukong.
• Professional Visualization: The first-quarter revenue in this sector reached USD 427 million, decreasing by 8% from the previous quarter but increasing by 45% from a year ago. NVIDIA introduced RTX™ 500 and 1000 professional Ada generation laptop GPUs, unveiled NVIDIA RTX A400 and A1000 GPUs for desktop workstations, and introduced NVIDIA Omniverse™ Cloud APIs for industrial digital twin software tools.
• Automotive and Robotics: Automotive revenue for the first quarter totalled USD 329 million, rising by 17% from the previous quarter and by 11% from a year ago. NVIDIA announced collaborations with leading electric vehicle makers, such as BYD, XPENG, and Lucid, to power their next-generation vehicle fleets with the next-generation NVIDIA DRIVE Thor™ and DRIVE Orin™ platforms. Additionally, the company introduced Project GR00T foundation model for humanoid robots and significant updates to the Isaac robotics platform.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands upward trending with value of 75.50, currently inside overbought zone, with expectations of a consolidation or some correction before the continuation of the upward trend (expectations of bearish divergence). Additionally, the stock's current positioning is above both the 21-period SMA and 50-period SMA, which may serve as dynamic short to medium-term support levels.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is June 05, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.