Why NVIDIA Popped

Before you go, we thought you'd like these...
Before you go close icon

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of graphics specialist NVIDIA (NAS: NVDA) have popped today by upwards of 10% after the company posted an upbeat earnings release coupled with better-than-expected guidance.

So what: Revenue in the quarter came out to $924.9 million, with adjusted net income of $97.5 million, or $0.16 per share. The Street would have settled for just $916.2 million in sales and a dime per share in profits, letting NVIDIA register an earnings beat. CEO Jen-Hsun Huang said the company's new Kepler GPUs are boosting business and Tegra growth is on track.


Now what: Guidance for next quarter calls for sales between $990 million and $1.05 billion, topping analyst forecasts of $976 million. NVIDIA pointed out that the first Ultrabook carrying one of its GPUs was launched in March, while the first quad-core Tegra 3 also saw a debut in February. Huang is also excited by the upcoming launch of Microsoft Windows 8 on ARM, as it hopes its Tegra chips will gain additional traction there.

Interested in more info on NVIDIA? Add it to your watchlist byclicking here.

At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Microsoft.Motley Fool newsletter serviceshave recommended buying shares of Microsoft and NVIDIA.Motley Fool newsletter serviceshave also recommended writing puts on NVIDIA and creating a bull call spread position in Microsoft. The Motley Fool has adisclosure policy. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners