This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Why Chipmaker Nvidia (NVDA) Eked Out Gains Today

NEW YORK (TheStreet) -- In-line third-quarter earnings and a generous dividend encouraged Wall Street to buy up shares of Nvidia Corporation (NVDA - Get Report) during Friday trading. The chipmaker had spiked 5% to $15.27 by early afternoon.

Reporting after the bell the on Thursday, profit of 20 cents a share on revenue of $1.05 billion was in line with Wall Street's expectations.

Management also announced a 13% increase to Nvidia's quarterly dividend and their intention to return $1 billion to shareholders in fiscal year 2015 through a combination of stock repurchases and dividend payments.

Weaker-than-expected fourth-quarter guidance, however, has sparked concerns of an increasingly crowded marketplace. The Santa Clara, Calif.-based company said revenue should come in around $1.05 billion, lower than consensus of $1.08 billion.

Must Read: Why FireEye (FEYE) Burnt Out

Specializing in creating graphics chips (GPUs) for personal computers, the company has been pushed to diversify into components for tablets and smartphones. However, competition is stiff with giants Broadcom (BRCM), Qualcomm (QCOM - Get Report) and Texas Instruments (TXN - Get Report) cornering the market.

GPU sales fell 2% year over year to $876.8 million, though gained 2% sequentially. The company's Tegra processor division, which manufactures chips for smartphones, saw sales drop more than half that of a year earlier, but was up 111.4% since the quarter earlier. Gross profits fell 12.5% on a year earlier.

TheStreet Ratings team rates Nvidia Corp as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate Nvidia Corp(NVDA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
NVDA $35.47 -2.00%
QCOM $50.46 -3.20%
TXN $57.10 -2.70%
BRCM $0.00 0.00%
AAPL $93.59 -1.30%


Chart of I:DJI
DOW 17,716.81 -113.95 -0.64%
S&P 500 2,057.50 -18.31 -0.88%
NASDAQ 4,759.5450 -45.7460 -0.95%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs