Nvidia Shares Fall Despite Q4 Earnings and Revenue Beat

Oak Associates Ltd Oh reduced its stake in NVIDIA Corporation by 16.33% during the most recent quarter end.

Nvidia disclosed how much green it made during the fourth quarter of 2016 today, along with its whole-year results for its fiscal 2017. Also, EVP Debora Shoquist sold 19,265 shares of the stock in a transaction that occurred on Thursday, December 29th. Shareholders of record on Friday, February 24th will be paid a dividend of 0.14 per share by the computer hardware maker on Friday, March 17th.

NVIDIA reported record quarterly GAAP gross margin of 60% and non-GAAP gross margin of 60.2%. The stock is now trading 9.24 percent higher from its SMA-50. RBC Capital Markets upped their target price on shares of NVIDIA Corporation to $95.00 in a report on Friday, November 11th. The shares started at $120.03.

The company said its bottom line advanced to $704 million, or $1.13 per share.

Having a glance at growth estimates of the company, it has current quarter growth estimates of 137.10% whereas for next quarter it has 93.90% estimations over growth.

NVIDIA Corporation (NASDAQ:NVDA) [Trend Analysis] shows fluctuation in active trade, on Tuesday shares jumped up 1.97% to $119.62. The company had revenue of $2 billion for the quarter, compared to analysts’ expectations of $1.69 billion. The company reinforced its position at the top of the market, gaining 66.4 per cent year-on-year. The firm has a market cap of $64.21 billion, a PE ratio of 60.87 and a beta of 1.31. Gross margin finished out at 58.8%, up 2.7% from the company’s fiscal 2016.

Datacentre sales tripled to $296 million. Plus, it has plans for artificial intelligence and self-driving cars.

But analysts warn that growth in the data center may slow in the coming year.

Deep learning has been a strong area of interest for Nvidia over the past few year, with Nvidia CEO Jen-Hsun Huang explaining that it is a breakthrough technique in the category of machine learning, and machine learning is an essential tool to enable AI. “The era of AI is upon us”.

Nvidia shares were trading at $20 per share.

Traditionally, the company’s processors have been mostly used to power the latest gaming graphics, but the chips have become popular to run AI software in the data center and autonomous vehicles. Geneva Advisors LLC increased its stake in shares of NVIDIA Corporation by 176.9% in the third quarter. That was an increase of over 600 percent. During the earnings call, Huang said that Nvidia expects deep learning to continue growing in importance across every industry. Specifically, the short-term and long-term process is important.

The business of most interest to HEXUS readers, Nvidia’s GPUs for PC gaming, still contributes more than three-quarters of its total revenue. The last four reports beat expectations by 17 percent on average. There is the argument that now is the time to sell. Following the completion of the sale, the director now owns 40,912 shares of the company’s stock, valued at approximately $4,039,650.88.