Its better-than-expected results were largely attributed to growth in consumer sales, which continue to rise, helped by increased Tegra demand. Nvidia continues to steal market share from Advanced Micro Devices (AMD) in graphic chips even as Intel (INTC) said a month earlier that it was hurt by rising inventories.
In terms of guidance, the company expects Q4 revenue to come in the range of $1.03 billion to $1.18 billion. While this might be slightly lower than analysts' estimates of $1.21 billion, it will represent annual growth of over 20%.
Nvidia ended the call announcing to investors its plans to pay the first-ever dividend in the company's history. The payout of 7.5 cents per share will begin Dec. 14, while also extending its current share-repurchase program by an additional two years through 2014.
Another area that stood out during the quarter was the reversal of what once seemed a margin depreciation. That gross margins jumped over 1 point was indeed impressive and suggests that even as the company spends to transform its business, it keeps a focus on profitability. That said, as good as I feel about Nvidia's ability to transform itself, I don't expect Qualcomm, Texas Instruments or Intel (INTC) to make this an easy transition.Anyone wanting to place a bet on Nvidia at this point should feel pretty good about its prospects -- even as its PC business slowly erode. The market knows this and so does Nvidia. But at current levels, I think the risk-reward tradeoff favors Nvidia. And it is not too unrealistic to expect the stock to trade in the $15-to-$20 range over the next 12 to 16 months. At the time of publication, the author was long AAPL and held no position in any of the other stocks mentioned. Follow @rsaintvilus This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV