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
- 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.
- 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.
- 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.