Please ensure Javascript is enabled for purposes of website accessibility

My Take: 3 Reasons Why NVIDIA Had Amazing Earnings

By Jose Najarro - May 28, 2021 at 7:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this the best semiconductor company to own right now?

In today's video, I look at NVIDIA (NVDA 1.44%) and share some bullish thoughts on its most recent earnings. I also discuss what I believe is the most significant risk for this company's stock price right now.

Three reasons to own NVIDIA after its earnings report

  1. The data center segment reported 79% year-over-year (YOY) revenue growth and 8% quarter-over-quarter (QOQ) revenue growth for the first quarter of fiscal year 2022. The sequential increase was a relief for investors as the previous quarter showed nearly flat sequential growth.
  2. The gaming segment reported 106% YOY revenue growth and 11% QOQ revenue growth for Q1 FY22. The driving force was record sales of GPUs for both laptops and desktops. 
  3. The future for NVIDIA is looking strong. The management team guided for $6.3 billion for Q2 FY22, which would be another record-breaking revenue quarter for the company and represent a 62% YOY growth.

Click the video below for my full thoughts. 

*Stock prices used were the midday prices of May 27, 2021. The video was published on May 27, 2021. 



Jose Najarro owns shares of NVIDIA. The Motley Fool owns shares of and recommends NVIDIA. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NVIDIA Corporation Stock Quote
NVIDIA Corporation
NVDA
$183.57 (1.44%) $2.60

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
390%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/11/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.