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My Take: 3 Reasons Why NVIDIA Had Amazing Earnings

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

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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.

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