NVIDIA Shares Popped: What You Need to Know

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: NVIDIA (Nasdaq: NVDA  ) popped 11% in intraday trading today after reporting better-than-expected earnings.

So what: Non-GAAP EPS of $0.32 came in well ahead of the $0.25 consensus estimate. GAAP EPS of $0.25 improved markedly from -$0.25 in the year-ago quarter. Revenue of $1.02 billion grew 25% year over year and 6% quarter over quarter. Management said it expects revenue for the current quarter to grow 4%-6% sequentially, with gross margins holding flat.

Now what: The company credited consumer notebook demand for the strong quarter and one analyst said NVIDIA is taking graphic processor market share from Advanced Micro Devices (NYSE: AMD  ) . A competing analyst expressed concern that NVIDIA will lose share to Intel's (Nasdaq: INTC  ) Sandy Bridge microprocessors, which incorporate graphics processors. With industry growth shifting from PCs to smartphones and tablets, NVIDIA's future seems to hinge on its Tegra processors for mobile devices. The CEO said, "With Tegra's momentum and our growing GPU (graphics processor unit) businesses, we are ideally positioned to lead the industry forward."

Interested in more info on NVDA? Add it to your watchlist by clicking here.

Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On August 12, 2011, at 10:52 PM, libra4us wrote:

    AMD – ROI & Risks:

    1/2011 – Brazos E- and C-series APUs for low-end laptop/notebook and netbook PCs

    6/2011 – Brazos Z-series APUs for tablet PCs

    6/2011 – Llano A-series APUs for mainstream laptop/notebook and desktop PCs

    8&9/2011 – New generation of chips for servers and high-end desktops

    GPU chips for game consoles

    Die buy instead of wafer buy (Cost control)

    Some products made by TSMC (Cost control)

    Stock shares oversold by 17.6% (as of 7/29/2011)

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