22 Billion Reasons to Buy Nvidia Stock
Nvidia's (NASDAQ: NVDA) fiscal 2023 second-quarter results (for the three months ended July 31, 2022) indicate that the graphics card specialist is struggling following years of terrific growth.
The chipmaker already warned that its numbers would fall way behind expectations thanks to the weakness in the gaming segment. The company reported $6.7 billion in revenue on Aug. 24, which was an increase of just 3% over the prior year. Non-GAAP earnings fell 51% year-over-year to $0.51 per share, driven by a massive contraction in the company's margins on account of inventory adjustments and lower average selling prices (ASPs) of graphics cards.
The guidance was also disappointing. Nvidia anticipates $5.9 billion in revenue this quarter, along with an adjusted gross margin of 65%. The company's revenue guidance fell $1 billion short of Wall Street's estimates. Additionally, Nvidia's forecast for the current quarter points toward a 17% year-over-year contraction in revenue. The adjusted gross margin is expected to drop by two percentage points according to the company's guidance.
Source Fool.com
