Yahoo Finance
With Nvidia's (NVDA) stock stuck in neutral for the better part of the summer as investors have fretted aboutpeak artificial intelligence growth, the chip darling decided to take one swift measure to silence the naysayers.
The action: serving up a rare long-term outlook that blew everyone on the Street away.
Nvidia said late Wednesday after reporting itsfiscal second quarter earningsthat it sees 70% revenue growth for fiscal year 2028.
This was above analyst forecasts for 45% growth.
The sales gain would be larger if not formemory chip shortages, said Nvidia CEO Jensen Huang.
"The first ever year ahead guidance is the real news," Stifel analyst Ruben Roy wrote in a note.
"We think the more revealing point is why they guided at all.
Management framed it as getting customers, shareholders and the supply chain onto the same set of information, which in our view makes this as much a supply-chain coordination device as a forecast, and reassure suppliers to commit capacity and customers that BoM inflation was being absorbed too via the fiscal year 2028 ~72-73% gross margin guide (down from mid-70% prior)." Shares of Nvidia rose nearly 8% in premarket trading on the results and upbeat outlook.
Prior to the earnings report, Nvidia shares had slightly underperformed the S&P 500's year-to-date gain of about 14%.
To be sure, the company's fiscal second quarter warranted a strong long-term outlook that may end up proving conservative.
Nvidia saw adjusted earnings per share of $2.22 on revenue of $96.2 billion.
These were better than the $2.09 a share the Street had expected and revenue of $92.3 billion.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment