Notably, NVDA witnessed strong growth for both of its key markets: gaming and data center. Nvidia Corporation's top line expanded by 15% QoQ and 68% YoY to $6,507 million in the most recent quarter. As I noted in the preceding section, Nvidia Corporation's Q2 FY 2022 financial performance was one of the key (if not most significant) factor driving the company's share price increase in the last month. This sparked off another significant share price run for the stock, as NVDA's stock price increased by 4% on the next day (August 19, 2021) and its shares rose by a cumulative 19% in the two weeks following the Q2 results announcement. Nvidia announced the company's earnings in the second quarter of fiscal 2022 (to July 31 period) on Augafter trading hours. In determining if Nvidia Corporation's current stock price out-performance is sustainable, it is necessary to review NVDA's recent second-quarter earnings, which is the topic of the subsequent section. In contrast, the three major stock indices, Dow Jones, S&P 500 and Nasdaq, only rose by 15%-20% over the same period. Year-to-date in 2021, Nvidia Corporation's stock price has jumped by +73%. This is definitely positive for Nvidia Corporation, as I noted in my August article that "the growth in 'crypto mining' drove the significant increase in its (Nvidia's) gaming revenue" in the first quarter of fiscal 2022. The ARM deal will come under the scrutiny of the regulatory authorities in the European Union in September, and NVDA has indicated earlier at its recent Q2 earnings call that "we are working through the regulatory process" for the ARM transaction.Īnother key news event which happened in the last month is that market research firm Allied Market Research published a new report forecasting that the cryptocurrency market (on a worldwide basis) will grow from $1.49 billion (as of 2020) to $4.94 billion in the next decade. Apart from better-than-expected Q2 FY 2022 financial results that were reported earlier in the month (which I will discuss in the next section), Nvidia Corporation also benefited from positive news flow which boosted its stock price.Ī piece of important news is that Nvidia continues to move forward with the company's proposed acquisition of ARM. In the past month, NVDA's share price has gone up by 15% from $197.50 as of Augto $226.88 as of Augsince I published my prior article.
#Nvda stock price after hours drivers#
Taking into account both the short-term risks and long-term growth drivers for the stock, I continue to assign a Neutral rating to Nvidia.
However, I think that a potential valuation de-rating for Nvidia in the near term could be in the cards, if the ARM acquisition does not go through and cryptocurrency mining demand wanes. Nvidia's good stock performance in the past month following my earlier article is likely driven by above-expectations quarterly earnings, continued progress in relation to its planned acquisition of ARM ( ARMHF), and the positive long-term outlook for the cryptocurrency mining market. This current article offers my updated view of Nvidia following its Q2 FY 2022 earnings. I previously wrote about NVDA in an article published on Augprior to the company's Q2 FY 2022 (YE January 31) financial results released in mid-August. I continue to rate NVIDIA Corporation's ( NASDAQ: NVDA) shares as Neutral or Hold. Justin Sullivan/Getty Images News Elevator Pitch
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