Nvidia reported earnings of 33 cents a share for the first quarter, above analysts' estimates of 26 cents a share for the quarter. Revenue grew 4.5% year over year to $1.15 billion, compared to analysts' estimates of $1.16 billion.
The chipmaker said that it will wind-down its Icera modem operations in the second quarter, and is open to the sale of the technology of operations. Nvidia expects to recognize restructuring charges of $100 million to $125 million in fiscal 2016.
Looking forward to the second quarter of fiscal 2016, Nvidia said it expects to report revenue of $1.01 billion, plus or minus 2%, compared to analysts' estimates of $1.18 billion in the quarter.
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 revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."