Nvidia Stock Explodes
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Holy smokers guys, Nvidia just hit its 52 weeks high but not only is 52 weeks high, it just hit the highest price it has ever been in the stock’s history. Are you flipping my flapjacks this stock is over $216 per share today it hit over $218 per share at one point guys, we get to discuss all this we got to look into why exactly this is happening.
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Is this stock slowing down anytime soon? Or is this trajectory just going to keep going? We know this is one of the most beast stocks out there guys. By the way. I am Jeremy This is a financial education channel. And let’s go ahead and look at this guy. So first off, they reported numbers here.
They reported them actually on Thursday after the market closed here. Okay, so epcs came in at Dollar 33 there was versus 94 cents was expected a monstrous beat there on the PS side. Okay, revenue came in at $2.64 billion. That was versus $2.36 billion was expected so a very nice beat their revenue came in at 32% higher than a year ago quarter and earnings jumped 41% year over year huge huge numbers there guys.
And you know, I love it when the APS is actually rising at a faster rate than revenue so very impressive there. The company reported $501 million in data center revenue, which includes sales of GPUs to a cloud providers like Amazon Web Services, we know that business is growing for Amazon Holy smokes, beating analysts estimates of $461 million and marking a 20% increase from last quarter.
This is a quote from the CEO we’ve been steadfast with the excitement of accelerated computing for data centers and I think this is just the beginning of it all. That’s a huge statement. He says it is just the beginning of it all guys, unbelievable there.
So if we look here, okay, and this is some more good news around Nvidia. Nvidia launched the voltage chips in May as part of its Tesla v 100. Data Center graphic processing unit GPU that will power CIT systems from artificial intelligence to driverless cars.
Okay, so at some huge growing sectors there, volta launch what we suspect was a major catalyst for Intel to go back to the drawing board with its AI chip Nirvana the tactical needed to use the AMD GPU and hire Raja whatever his name is to head.
Intel’s new graphics efforts said this analysts here Okay, we know that earlier in the week AMD and Intel are now partnering something you may have never thought would happen right? Intel and AMD partner and something they’re partnering because they need to because Nvidia is so far out there that in order for Intel and AMD to come together.
They really need to so then they can come out with something as competitive as Nvidia launched here in videos basically, with their chips. They basically made it so AMD and Intel kind of have to get together if they don’t, they’re just going to be the two weaker parts there and that whole story there.
So the company claims that volta will will feel breakthroughs in every industry in humanity’s moonshots like eradicating cancer or flipping my flapjacks in intelligent customer experiences and self driving vehicles. At least 14 analysts raised their price targets on the stock SunTrust Roberts, Robinson, analysts were the most bullish with a price target of $253.
That’s not that far from where we’re at now, Nomura raised its price target from $190 to $109. From 110 Holy smokes they were way out of it out of 37 brokerages covering the stock has a lot of companies covering the stock 20 have a buy rating 14 have a hold in only three have a sell or lower.
Okay guys, so great numbers out of Nvidia here unbelievable numbers in the ETS is going up at even a faster rate than net income. So this is all really phenomenal news. Now, will this slow anytime soon? Those kinds of things. Why am I not invest in the stock things like that, guys?
Well, if we look here, over the last three years, the stock is up nearly 1000 Yes, you heard me right. 1,000%, almost 1,000%. In the past three years, this stock is up here, guys. Now, when I look at a company, okay, I’m not so much looking at it from a perspective of is it that it’s 52 week high?
Oh, I don’t want to touch that. Or maybe I do want to touch it. It’s a 52 week low. I don’t care about any of that. Because when I go into a stock, I don’t care about the past. I don’t care if you’re at your 52 week high or your 52 week low. I don’t care about any of that.
I care about the business fundamentals. I care about where those p e ratios are at relative to how your growth is going. And those kinds of things. How much do I see your business growing? I care about the base fundamentals, not where your stock has been in the short term or the long term over the last three years.
I don’t care about any of that. So if we look here in video, they have a trailing p e of around 62. They have a forward P of a little under 54 here okay. So for me when I look Look at this stock one, it’s a little out of my circle of competence. What do I mean by circle of competence?
Obviously, I understand what their business is, I understand what their business does, right? My main issue with Nvidia is when I talk about circle of competence, sometimes that means you can’t really see how much growth it has had of it.
So I don’t know I can’t really live realistically say that this company is more likely going to double revenues or triple revenues over the next three to five years, which is really what they need to do to get that PE to a normal size level, right? That’s what they really need to do to get that PE down.
Right? They really need double net income or triple net income over the next three to five years. I don’t know if they’re gonna do it, they mean the way the business is growing, if it keeps growing like that, they can obviously do that, but I don’t know because it’s a little out of my circle of competence.
So I don’t you know, there’s certain industries that I can say, you know, if Wynn resorts is gonna open up a new property and such and such city right or in another country or something like I have a pretty good guesstimate on what type of revenue that would bring the company what type of net income that would bring to the company right?
In something like this within video with their chips like I don’t I just don’t know I don’t know, uh, you know, I can’t see a you know, will the company be able to double the net income and things like that. So for that reason, you know, Nvidia is not stuck a stock I can touch it’s one I love tracking and it’s great to see everybody that is invested in this company making lots of money.
I’m very happy for you guys if you are an individual who’s in this stock, great for you. If there’s any invidious shareholders watching this video, let me know you know like where are you seeing that income going over the next three to five years? Is this a company that’s going to easily double triple up net income if so why.
I want more specifics on like numbers like oh, I can see them moving this many chips they get this type of revenue like give me the actual breakdowns here I don’t want just like generic answers like artificial intelligence is going to be huge driverless cars get like no shit like everybody knows that right?
Like that’s not rocket science to me I want to I want the actual breakdowns and numbers if you really have an insight on the stock because I would love to I would love to hear from you guys. So anyways, hope you guys enjoyed this if you’re new the stock market click that second link in the description that goes into my 11 part stock market investing mastery course if you’re an experienced investor, click that very first link.
Join my membership group there that has a 12 part options course in it that teach you everything to do with options also I post in there all the time stocks, I’m buying any moves I’m making in the market socks, I’m selling all that good stuff. Thank you for watching, guys and have a great day.