On October 15 I noted that the hike in revenue guidance from Taiwan Semiconductor Manufacturing (TSM) on huge demand for its chips in AI and gaming (among other sectors) was good news for gaming, AI, and data center leader Nvidia (NVDA.)
And I hinted at buying shares in Nvidia before that company reports earnings for its fiscal fourth quarter on November 12. (That’s NASDAQ’s current forecast for when Nvidia will report earnings. Other sources say November 18.)
Well, today I’m taking that from “hint” to “buy.” I’ll be adding shares of Nvidia to my long-term 50 Stocks Portfolio tomorrow.
Shares closed at $540.99, down 0.88%, today.
Recently Nvidia has routinely delivered an upside earnings surprise. In the fiscal fourth quarter of 2019 the company beat by 21 cents a share. First quarter of 2020: a 22 cents a share beat. Second quarter of 2020: an 11 cents a share beat. Fiscal third quarter of 2020: a 21 cents a share beat.
Wall Street is projecting earnings of $1.92 a share on revenue of $4.41 billion. That would be a 31.5% year over year increase in earnings for the quarter and a 46.3% year over year increase in revenue. For the 2020 fiscal year those estimates amount to a 51% growth in earnings from fiscal year 2019 and a 44.8% increase in revenue for fiscal 2019.
Which would be impressive in the midst of a global pandemic.