All posts from Zacks
Zacks in Our Research. Your Success.,

Will Gaming Remain Dominant For Nvidia In Q3?

Nvidia Corporation NVDA quickly became one of Wall Street’s most popular and prominent  tech stocks, resting in the tier just below giants like Intel INTC. The company also happens to be one of the last big-time brands to report its most recent quarterly earnings this season.

The semiconductor powerhouse remains a top producer of graphics chips, which has helped its shares soar nearly 100% since the start of the year. Along with its core business, Nvidia has also ventured into more nascent economic sectors, including driverless vehicle technology and artificial intelligence.

Now, before Nvidia is set to report its third-quarter fiscal 2018 results on Thursday after the closing bell, it is time for investors to dive into some of the company’s projected financial outcomes.

Nvidia’s Q3 earnings are projected to climb over 13% to 94 cents per share, based on our current consensus estimates. The company’s top line is expected to jump almost 18% year-over-year to hit $2.36 billion.

Nvidia investors will also want to understand how the company is expected to perform in its individual business units.

Thankfully, our exclusive non-financial metrics consensus estimate file can help investors break down some different segments. These key stock-driving estimates are updated daily and are based on the independent research of expert stock analysts. For more information on the NFM file, click here.

Nvidia’s Datacenter unit is projected to see staggering growth, while we also expect its Automotive revenues to pop. But even with these substantial surges in growing and future-looking business segments, investors might want to focus on how the company really makes money.

More than half of the semiconductor company’s revenues still come from its Gaming division. And the continued proliferation of video games, coupled with the rise of “esports”—or competitive video gaming—has only increased the demand for Nvidia’s high-powered graphics chips, which were already beloved by PC gamers around the globe.

Therefore, investors should be excited to know that, based on our latest NFM consensus estimates, sales from Nvidia’s Gaming unit are projected to climb over 7% to hit $1.332 billion.

For more stock-moving estimates ahead of Nvidia’s Q3 report, check out our full guide: What To Expect From Nvidia's Q3 Earnings Report.

And make sure to check back here for our full analysis of Nvidia’s actual results later this week!

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Intel Corporation (INTC): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research