Nvidia (SYM: NVDA) could easily race higher.
Earlier this week, the tech giant blew earnings out of the water.
In its first quarter, the company posted adjusted EPS of $6.12 on sales of $26 billion. Gaming revenue was 18% higher year over year. Data center revenue jumped to $22.6 billion as compared to estimates of $21.13 billion. Total revenue was up 427% year over year.
Looking to the second-quarter, Nvidia expects to generate $28 billion in revenue, plus or minus 2%. Analysts were forecasting $26.8B in revenue.
Even better, “NVDA is not just growing sales faster than any other mega cap (Q1 sales up 262% YoY), but also generating over 57% FCF margin,” said Bank of America analyst Vivek Arya. “At this pace, NVDA could generate over $120bn in FCF in the next two years and over $200bn in FCF in the next three years (by CY27), creating strong growth optionality. Second, NVDA’s ~40%+ growth in operating expenses (for CY24, versus most chip peers constraining opex), can help sustain its strong competitive positioning. Per NVDA, every $1 of capex generates $5 of hosting revenue in four years for customers, so [there’s] strong ROI.”
What will make NVDA even more attractive is its upcoming 10:1 split on June 7.
Following the split, shareholders of record as of June 6, 2024, will receive nine additional shares of stock for each share they own after the market close on Friday, June 7. The stock will then begin trading on a split-adjusted basis on June 10.
Post-split, NVDA at about $100 a share will be tough to avoid.
Given the demand NVDA is seeing, it could race right back to $1,000 a share.
Has Jeff Bezos Found the Next Nvidia?
If you’ve sat back and watched companies like Nvidia and AMD soar over 2,000% over the past several years…
And turn $5,000 into $105,000
And wondered what was next…
You need to listen very closely…
Because Jeff Bezos has just found the next big thing…
It’s a technology Bank of America called,
“Bigger than fire and bigger than all the revolutions that humanity has seen.”
And before you start guessing…
It has nothing to do with A.I. ChaptGPT software out there…
Instead, it’s a technology that’s going to prove to be far more disruptive…
And Jeff Bezos has found one tiny company that’s going to dominate the entire industry…
This is a fast-moving story, but if you want the chance to profit alongside Jeff Bezos in the next big tech trend, go ahead and…
