The company outpaced earnings estimates in each of the trailing four quarters, the average surprise being 7.7%.Īnalysts have raised the estimates for fiscal 2022 and fiscal 2023 over the past 60 days, reflecting their confidence in the company. NVIDIA has an impressive earnings surprise history. The long-term earnings per share growth rate is estimated to be 19.2%. The Zacks Consensus Estimate of $4.33 for fiscal 2022 earnings suggests growth of approximately 73.2% from the year-ago period. NVIDIA carries a Zacks Rank #2 (Buy) currently. Story continues Solid Rank & Growth Expectations The Gaming end-market’s revenues reached $3.22 billion in the third quarter of fiscal 2022, reflecting a 42% year-over-year growth. With the emergence of Gaming-as-a-Service and massively multiplayer online games concepts, the demand for GPUs has been surging exponentially. The company’s revenues from the Data Center end-market increased 55% year over year to $2.94 billion in the third quarter of fiscal 2022.īetter visualization and speed are needed for a thrilling gaming experience, which NVIDIA successfully provides through its portfolio of Pascal architecture-based GPUs. To cater to this huge demand, data center operators are expanding their operations across the world, which is driving the demand for GPUs. As more businesses are shifting to the cloud, the need for data centers is increasing immensely. Solid uptake of artificial intelligence (“AI”)-based smart cockpit infotainment solutions is a boon.ĭata center presents a solid growth opportunity for the company. A surge in the Hyperscale demand remains a tailwind for the company’s Data Center business. Strong growth in GeForce desktop and notebook Graphic Processing Units (“GPU”) has been boosting its gaming revenues.
NVIDIA has been benefiting from the coronavirus-induced work-from-home and learn-at-home wave. The company performed brilliantly last year and has the potential to sustain the momentum in 2022 as well.
Therefore, if you haven’t taken advantage of the share-price appreciation yet, it’s time you add the stock to your portfolio. The stock’s price rally reflects the company’s robust fundamentals. Shares of NVIDIA soared 125.3% last year compared with the Semiconductor - General industry and the S&P 500 index’s rally of 63.2% and 27.7%, respectively. NVIDIA Corporation NVDA stock has outperformed the Zacks Semiconductor - General industry and the S&P 500 in 2021.
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