|NVIDIA surprised markets on Valentine’s Day with great quarterly results. The company reported that its fourth-quarter revenue touched the figure of $3.11 billion, almost 41% higher than the $2.21 billion it reported in the 4th quarter last year!|
Other key highlights from the earnings reported are as follows:
GAAP earnings per diluted share for the quarter was $1.53, 66% higher than $0.92 in the previous year.Total revenue for fiscal 2020 was $10.92 billion, about 7% lower than $11.72 billion reported in the previous year.GAAP earnings per diluted share for the year 2020 was $4.52, 32% lower than $6.63 in the previous year.NVIDIA will pay its next quarterly cash dividend of $0.16 per share on March 20, 2020, to its shareholders of record on Feb. 28, 2020.
|Chief Executive at NVIDIA, Jensen Huang, attributed the growth to new breakthroughs in artificial intelligence which in turn fueled the surge in data-center sales.|
“Adoption of NVIDIA accelerated computing drove excellent results, with record data center revenue,” said Jensen Huang, founder, and CEO of NVIDIA. “Our initiatives are achieving great success.
“NVIDIA RTX ray tracing is reinventing computer graphics, driving powerful adoption across gaming, VR and design markets, while opening new opportunities in rendering and cloud gaming. NVIDIA AI is enabling breakthroughs in language understanding, conversational AI and recommendation engines ― the core algorithms that power the internet today. And new NVIDIA computing applications in 5G, genomics, robotics, and autonomous vehicles enable us to continue important work that has a great impact.
“We are well-positioned for the greatest technology trends of our time,” he said.
The results were well received with a majority of analysts having a Buy or Overweight rating on NVIDIA’s stock.
NVIDIA stock surged almost 7% after the earnings release. The stock currently trades at $289 per share and is up 20% so far this year. Many analysts have a price target north of $300 which provides a good opportunity for the bullish investor!