Shares of Nvidia (NASDAQ: NVDA) are trading over 13% year-to-end and roughly 22% off the all-time high set in December.
The giant chipmaker has seen its shares slide following a major selloff in equity as the Fed starts its tightening process. Given the magnitude of this selloff, with Nvidia shares trading 36% off the highs at one moment, the question arises is it now a good moment to buy Nvidia stock?
In March, the company held its much-anticipated Analyst Day where it presented new products and discussed future plans.
Nvidia CEO Jensen Huang laid out the company’s future roadmap and introduced several new product developments at Nvidia’s GPU Technology Conference 2022 (GTC).
Huang made several significant announcements, one of which is the new NVIDIA Hopper H100 Systems – a new powerful GPU architecture to replace the current Ampere architecture.
The chip offers a considerable processing capability, however, users can link multiple H100 GPUs via NVLink interconnect to create a single huge GPU with an outstanding 4.9 Tbps of external bandwidth.
The new GPU is expected to hit the market in a format developed for servers first before Nvidia launches other formats.
The GTC 2022 marks the first significant event for Nvidia since the world’s largest GPU manufacturer dropped plans to buy a chipmaker Arm from SoftBank Group after regulators raised concerns over the $40 billion deal.
However, Nvidia’s plans did not change much after the unsuccessful Arm deal. Huang also unveiled a new “superchip” that combines two of its previously-announced Grace CPU units into a single unit.
Nvidia plans to launch Hopper H100 in the third quarter, with the company saying the chip will be used by the largest cloud providers in the United States and China, including Amazon Web Services, Microsoft Azure, Google Cloud, Tencent Cloud, Alibaba Cloud, and others. Furthermore, server manufacturing companies such as Dell Technologies and Cisco Systems will launch servers powered by the H100 accelerators, said Nvidia.
Among other highlights of the event, Nvidia also announced Omniverse Cloud, a cloud version of its powerful Omniverse collaboration and simulation engine, used by designers and engineers to build 3D virtual environments.
With the cloud version, anyone with an internet connection will be able to use Omniverse, without the need for a highly-powerful computing device.
Recent Financial Results
In February, Nvidia reported better-than-expected Q4 2021 financial results.
The company reported an adjusted EPS of $1.32, beating the consensus projection of $1.22 per share. Revenue in the quarter stood at $7.64 billion, above the analyst expectations of $7.42 billion and up 53% from the year-ago quarter.
Data center generated a revenue of $3.26 billion, up 72% YoY and above the analyst consensus of $3.15 billion. Gaming revenue came in at $3.42 billion, up 37% YoY, and topping the estimated $3.36 billion.
Adjusted gross margin in the quarter was 67%, up from 65.5% in the year-ago quarter and in line with the analyst consensus of 67.1%.
Nvidia reported adjusted operating expenses of $1.45 billion, above the expected $1.43 billion. Adjusted operating income came in at $3.68 billion, topping the expected $3.54 billion. Free cash flow was reported at $2.74 billion, below the $3.32 billion projection.
For the first quarter, Nvidia expects adjusted operating expenses of about $1.60 billion, more than the analyst consensus of $1.46 billion. It anticipates Q1 revenue of roughly $8.1 billion (up or down 2%), topping the analyst expectations of $7.22 billion. The company expects a Q1 gross margin of 67%, plus or minus 50 basis points.
Should You Buy Nvidia Stock?
In response to the latest earnings report, Nvidia stock fell 7.5% on the following day. The selloff presented investors with a great opportunity to buy Nvidia stock in early March given that shares hit a 5-month low just above the $200 mark.
Nvidia shares rallied nearly 30% off the multi-month lows to return trading above $250. The rally stopped at the 100-DMA with Nvidia stock buyers now hoping for another pullback to reload at a cheaper price.
For long-term investors, there is no doubt – investing in a high-quality, high-growth stock that is attacking a $1 trillion total addressable market (TAM) is a no-brainer.
Beat The Market With Our Expert Stock Picks
If you invested in 10 of our featured stock picks over the last 5 years, your chances of beating the market would be 90%.
Our last 3 stock picks grew a combined 348% after our alert!
Want to be notified the next time we issue a “Big Buy” alert or update our stocks to buy list? Sign up below today.
CVS to Acquire Signify in an $8 Billion Deal
Following recent media reports that the healthcare company CVS Health Corp (NYSE: CVS) is in advanced discussions to acquire home-healthcare provider Signify Health (NASDAQ: SGFY) for roughly $8 billion, two companies confirmed the deal on Monday. CVS agreed to...
Nvidia Stock Falls on China Warning
Nvidia shares dropped on Wednesday after the United States government limited sales of top AI chips to China. The tech company claims that its A100 and H100 high-performance AI chips would be impacted by the limitation in order to lessen the possibility that the...
Best Stocks to Invest for 2022 (September, 6)
September 6, 2022, World Wrestling Entertainment (NYSE: WWE) and Live Nation Entertainment, Inc. (NYSE:LYV) These two entertainment juggernauts have all the catalysts in the world pushing them as the best stocks to buy now. Just because American markets were closed on...
Volkswagen’s New CEO Wants to Accelerate EV Transition
On the first day on the job, Oliver Blume informed the public that Volkswagen will quicken its transition to electric vehicles (EVs), but that the company has to find the correct "rhythm" as it makes the necessary changes. Blume revealed a ten-point strategy...
Lululemon Athletica Shares Soar on Another Set of Strong Results
Lululemon Athletica shares increased by roughly 9% in after-hours trading Thursday, as the company announced quarterly earnings and revenue that exceeded analysts' estimates. U.S.-Canadian retailer reported better-than-expected results despite rising costs hurting...
Why is Best Buy (BBY) Stock Trading Lower This Week
Shares of Best Buy (NYSE: BBY) are down over 5% this week after the retailer reported a 13% drop in sales for the second quarter on Tuesday as consumers grew weary of inflation-driven price increases. How Did Best Buy Perform in Q1? Despite the sales...
Best Stocks to Buy Now (September 2)
September 2, 2022, Signet Jewelers Limited (NYSE:SIG) and Pure Storage, Inc. (NYSE:PSTG) Despite selling off following decent earnings, these two companies have considerable upside as the best stocks to buy now. As recession risks mount, the market is amid a...
Why EV Maker XPeng Shares are Down
Shares of the Chinese manufacturer of electric vehicles, XPeng (NASDAQ: XPEV), are trading over 20% lower in August after the EV company disclosed a wider-then-anticipated loss for the second quarter and disappointing delivery expectations. How Did XPeng...
Best Stocks to Buy in September 2022
September 1, 2022, Scorpio Tankers Inc. (NYSE:STNG) and EOG Resources, Inc. (NYSE:EOG) Singled out by a legendary growth investor, these energy standouts have more room to run as the best stocks to buy now. Investors appear to be in full-blown panic mode. The...
Dell Stock Hits Multi-Month Lows as Demand Weakens
Shares of Dell Technologies (NYSE: DELL) fell to their lowest level since 2018 earlier this week after the technology company reported solid Q2 results but warned of a significant slowdown in the second half of the year as raging inflation continues to weigh on...