As expected, (NASDAQ: NVDA) crushed earnings, further cementing its dominance in the booming artificial intelligence (AI) market and strengthening the bullish outlook for AI stocks.
In fact, the company saw adjusted EPS of $1.87, as revenue exploded 85% year over year to $81.61 billion. Analysts had expected the company to earn an adjusted $1.75 per share on $79.19B in revenue.
Data center revenue came in at $75.2 billion, as compared to estimates of $73.48 billion. Edge Computing revenue was $6.4 billion, up 29% year-over-year. Adjusted gross margin came in at 75% for the quarter, in-line with estimates. NVDA also generated $48.55 billion.
Moving forward, Nvidia expects revenue to be $91 billion, plus or minus 2%. The company also said that it does not expect any revenue from China for the period. Analysts had expected the company to generate $87.3 billion in revenue.
Even more impressive, Nvidia also added $80 billion to its share buyback program. And it raised its quarterly dividend to $0.25 per share, up from a prior $0.01 per share, which is payable to shareholders of record on June 4 on June 26.
And yet, that just wasn’t good enough for Wall Street.
Analysts say investors "have got used to Nvidia delivering stellar results and amid some concerns that it will face growing competition," as noted by the BBC. "Nvidia represents 8% of the S&P 500. Unless there’s a belief in this continued parabolic growth it’s difficult for investors to get super excited, although Nvidia posted outstanding numbers."
Objective: To profit off the anticipation buying ahead of an FDA panel decision or drugs decision date.
The key is to sell into the buying 24 to 48 hours ahead of the actual decision date. Do not believe the hype and hold through the actual decision. Stocks usually halt ahead of highly anticipated decisions. Don’t take the risk of getting stuck in one.
It is a wise idea to plug in "FDA" as a keyword into any streaming news feed that you have so that you can jump on these. You can also just use FDA as a keyword on Google News. Otherwise, there are a number of blogs and sites that list upcoming decisions.
Context: FDA decisions are the second most common events that drive extreme volume stock movements.
You know what the problem is with three-day weekends? I used to the answer that it meant I had four days to do five days’ worth of work. But the real problem is, if something dramatic happens, you are reacting on Tuesday when the Market opens again as opposed to being able to take action before the Market closed this past Friday.
Unless some Breaking News comes out of the Middle East over the weekend, this upcoming week might be more of the same as last week... Not much price change, but much opportunity to harvest Time Value Decay.
We have a new Federal Reserve Chairman - Kevin Warsh. The next FOMC Meeting is three weeks away. We have an inflation report Thursday morning.
I don’t think that combination can set the world on fire. But if Inflation is running Hotter than expected, mind you, it’s expected to run hot, President Trump’s new choice to lead the Fed will not be leading it to Lower Interest Rates anytime soon.
NOTICE: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins Publishing (“TradeWins”). The information provided by TradeWins in its various materials, including trading recommendations, newsletters and educational publications is not customized or personalized for any particular person or risk profile. Past results are not necessarily indicative of future results. Results presented can vary and may not be typical for all subscribers. There are substantial risks involved with investing in the stock and options market, including the risk of total loss. You should only trade or invest "risk capital" - funds you can afford to lose.