Visual computing company Nvidia (NVDA) delivered better-than-expected second-quarter results as gaming and data center revenue came in at record highs. However, shares fell by as much as 2.15% in intra-day trading following the news and closed the day at $190.40 on August 18.
Nvidia delivered record revenue of $6.51 billion, up 68% year-over-year and better than the consensus estimate of $6.33 billion. Gaming revenue totaled $3.06 billion after an 85% year-over-year increase. Data Center revenue landed at $2.37 billion, up 35% compared to the same quarter last year.
Additionally, Nvidia delivered an 89% year-over-year increase in diluted earnings that landed at $1.04 a share, surpassing consensus estimates of $1.02 a share. (See Nvidia stock charts on TipRanks)
During the quarter, the technology company launched NVIDIA Base Command and Fleet Command. The two will accelerate the development, deployment, and scaling of Artificial Intelligence (AI) workloads that run on the company’s AI Enterprise software suite.
CEO Jensen Huang stated, “With our new enterprise software, wide range of NVIDIA-powered systems and global network of system and integration partners, we can accelerate the world’s largest industries racing to benefit from the transformative power of AI.”
Nvidia paid a quarterly cash dividend of $100 million in the quarter. It plans to pay its next dividend of $0.04 a share on September 23, 2021, to investors of record as of September 1, 2021.
For the third quarter, Nvidia is projecting revenue of $6.80 billion, with a margin of 2%, and above the consensus estimate of $6.53 billion.
Yesterday, Mizuho Securities analyst Vijay Rakesh assigned a Buy rating on NVDA stock. Rakesh has a price target of $235, implying 23.42% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 28 Buys, 1 Hold, and 1 Sell. The average Nvidia price target of $214.51 implies 12.7% upside potential to current levels.
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