![]() ![]() On these fronts, Nvidia continued to gain steam in Q2. On the bright side, however, two business segments - data center and automotive - are expected to post sequential increases. #How to buy nvda stock professionalThis will likely be driven by sequential declines in its gaming and professional visualization businesses. The company expects to generate roughly $5.9 billion in revenue during the quarter, which is a drop of 17% compared to the year-ago period. Third-quarter guidance was bleak as well. The bulk of this drop was due to macroeconomic headwinds pressuring consumer demand for its gaming graphics processing units (GPUs). Nvidia's gaming business saw a year-over-year revenue decline of 33% to $2.04 billion in Q2. #How to buy nvda stock driverThe company's gaming segment was the primary driver of this disappointing performance. Comparatively, Nvidia has consistently grown its revenue above 40% on a year-over-year basis since the start of 2020. This also represented a 19% decline sequentially. Total revenue increased only 3% year-over-year in Q2 to $6.7 billion. Second-quarter earnings results were a significant shift compared to Nvidia's previous quarters. ![]() This action could potentially cause the stock price to fall even further as the P/S ratio attempts to stabilize.Image source: Getty Images. To make matters worse, as Nvidia's revenue falls, its P/S ratio will rise due to the denominator shrinking. I'm not saying this will happen, but it provides a perspective on where Nvidia's valuation has been within the last five years. ![]() If Nvidia reaches this low again, the stock still needs to fall another 44%, implying a stock price of about $70. However, Nvidia experienced massive demand issues due to a cryptocurrency crash in 2019 (sound familiar?), and the stock reached a valuation low of about six times sales at its bottom. From a price-to-sales (P/S) standpoint, Nvidia has reached a multi-year low. Because Nvidia isn't in a fully profitable state, looking at its earnings isn't as useful as looking at Nvidia's sales. The short-term future isn't bright for Nvidia, but if the stock has reached a low valuation, it could be a buy. Nvidia still has a long way to fall before testing valuation lows That's a far cry from the nearly $3 billion profit in last year's Q3. So with its updated revenue guidance, Nvidia's profit for the quarter should be around $750 million. This drop won't likely affect Nvidia's projected gross margins (62.4%) nor its operating expenses. That creates a 23% revenue drop year over year. Without the export ban, Nvidia expected about $5.9 billion in revenue during Q3. Has the stock sold off enough, or perhaps even been oversold at this point? Let's look at Nvidia and see if now is the time to buy the stock. Issues like these helped drop Nvidia's stock price by 57% so far in 2022. These sanctions are expected to hit Nvidia's revenue to the tune of around $400 million in Q3, depending on whether its customers in China and Russia are willing to substitute less powerful chips. has banned the sale of Nvidia's most powerful (and expensive) chips to these countries. To minimize the spread of advanced artificial intelligence (AI) technology to China and Russia, the U.S. government last month forced more demand issues onto Nvidia. 24) and gross margin taking a 20% dive, Nvidia's financials are the weakest they've been in many years. With revenue falling 33% year over year in its second quarter (which ended Aug. ![]() The GPU (graphics processing unit) maker has dealt with demand issues in its gaming segment (which also includes cryptocurrency miners). Nvidia ( NVDA 4.00%) has been in the spotlight multiple times over the past few months, and not for good reasons. ![]()
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