![]() ![]() We were slightly concerned with a potential double top formation after the impressive earnings report but this has been put behind us now with the strong performance on Friday. Gaming revenue grew to $3.22 billion, up 42% YoY. Nvidia also forecast Q4 revenue to increase to $7.4 billion at the mid-range. There were strong growth signs with data centre revenue up over 55% YoY. Revenue was $7.1 billion ahead of the $6.83 billion estimate. But with revenue growing between 50 and 60% and a pivot into the omniverse as well as strong gaming and AI revenues, the revenue stream looks strong going forward. Earnings per share were $1.17 versus $1.10 estimated. The UK has cited national security concerns and now the US is also going to examine the proposed deal. The only headwind is the potential purchase of ARM. That is an exceptionally high margin number and sees revenue comfortably trickle down to strong earnings. ![]() Rising revenues and margins also remain strong at nearly 67% for gross margin. Certainly, the company is in the sweet spot right now. This led to a string of price target changes from virtually all of the major Wall Street banks that cover Nvidia. While revenue growth is slowing it is slowing from very high level and NVDA forecast Q4 revenue to be ahead of analyst estimates. It was really the earnings report on Wednesday that set things in motion for the latest push higher. However, that is obviously not enough to dent investor enthusiasm with Friday seeing more record highs set. NVDA stock has seen a huge growth in both gaming revenues and chip revenues but its proposed takeover of UK chip manufacturer ARM is facing regulatory headwinds. The stock is up 153% year to date and nearly 50% in the last month. While the semiconductor sector has outperformed the main benchmarks, Nvidia is in a league of its own this year. Semiconductor stocks have been having a strong year as global shortages mean demand and prices are strong. The move is a continued follow-on from Nvidia's earnings report last week which set the latest rally in motion. ![]() Nvidia stock set another all-time high on Friday as the stock closed up over 4% at $329.85.
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