Just over a year ago, Nvidia stock ( NASDAQ:NVDA ) was trading in the $340s, with the underlying Company burning on all cylinders. Total sales increased by 46% to new highs. Its video game division saw sales increase 31% to $3.62 billion, while data center demand, including artificial intelligence (AI), was off the charts, with sales increasing 83% to $3.75 billion.
Nvidia stock ( NASDAQ:NVDA ) was a Wall Street favorite, and the sentiment was quite positive. The good times were still going strong as 2022 approached.
Nvidia Stock:Unexpected Fortune Reversal
Fast forward to October 2022, and the earlier tailwinds have turned into headwinds as investor sentiment has likewise changed. The stock ( NASDAQ:NVDA ) is down (-62%) for the year, having recently hit 52-week lows of $108.13. The Wall Street darling became a pariah. The video game industry is still losing steam, with sales dropping by 33%. Investors are waiting for the other shoe to drop after earnings warnings from Advanced Micro Devices (NYSE: AMD), Marvell Technologies (NASDAQ: MRVL), Western Digital (NYSE: WDC), and Intel (NASDAQ: INTC). The United States imposed AI chip limitations on sales to China, resulting in $400 million in damage to the Company’s bottom line.
Nvidia Stock: The U-turn
NVIDIA revealed their fiscal second-quarter 2023 earnings for July 2022 on August 24, 2022. The Company reported an EPS profit of $0.51, excluding non-recurring items, compared to average analyst projections of $0.52, a (-$0.01) miss. Revenues increased 3% year on year (YoY) to $6.7 billion, meeting analyst expectations. Revenue from data centers increased 61% year on year to $3.81 billion. Gaming rev...
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