NVIDIA's Strong Q4 Still Understates Its Potential

Share prices may have tumbled shortly after the earnings report numbers were posted, but there's no denying NVIDIA (NASDAQ: NVDA) had a stellar fourth quarter. Sales were up 61% year over year, driving a 64% increase in per-share earnings. Granted, the big jumps are largely attributable to the Mellanox acquisition completed in April of last year, but both the top and bottom line topped expectations. Its first-quarter guidance was impressive too. The company is looking for about $5.3 billion in revenue for the quarter now underway, well up from the year-ago comparison of $3.1 billion, and better than the $4.5 billion analysts were expecting.

Nevertheless, NVIDIA share prices are off to the tune of 6% since the fourth-quarter figures were published. The market is taking NVIDIA's warning of chip supply shortages to heart; the latest round of cryptocurrency mania may have also run its course.

Image source: NVIDIA.

Continue reading

Source Fool.com