The numbers: Third-quarter net income increased 74% to $108 million, or 19 cents a share. Revenue improved marginally to $903 million. Nvidia's gross margin stalled at 41%, but its operating margin widened from 8% to 9%. The company has an admirable financial position, with $1.6 billion of cash and $25 million of debt.
The stock: We rate Nvidia "hold." The stock has doubled this year, outperforming major U.S. indices and meriting a performance score of 8.9 out of 10. Despite the impressive return, Nvidia has generated net losses in three of the four previous quarters, earning the company a growth score of 2.4 out of 10.