Thursday, May 12, 2016

NVIDIA Sets New All Time High On Pretty Good Numbers, "Sweeping Artificial Intelligence Adoption" (NVDA)

We are fans.
Before we go any further, our NVIDIA boilerplate: we make very few calls on individual names on the blog but this one is special.

They are positioned to be the brains in autonomous vehicles, they will drive virtual reality should it ever catch on, the current businesses include gaming graphics, deep learning/artificial intelligence, and supercharging the world's fastest supercomputers including what will be the world's fastest at Oak Ridge next year.
Not just another pretty face.

Or food delivery app.

After hours the stock is changing hands at $38.31 up 7.70% which, if it holds through tomorrow's regular session, beats the old highs from 2007.

First up Investors Business Daily:
Tesla Motors (TSLA) partner Nvidia (NVDA) rocketed late Thursday after the maker of graphics chips beat Q1 sales expectations and topped earnings views by a penny, led by faster adoption of artificial intelligence technology that utilizes Nvidia graphics chips.
In after-hours trading after its earnings release, Nvidia stock was up nearly 6%, rebounding from a 1.4% dip, to 35.57, in the regular session. Shares are up 8% for the year.
For Q1, Nvidia reported $1.3 billion in sales and 33 cents earnings per share, up a respective 13% and 38% vs. the year-earlier quarter, and topping the consensus of 26 analysts polled by Thomson Reuters for $1.26 billion and 32 cents.
CEO Jen-Hsun Huang credited accelerated growth of deep-learning, or AI, technology for the Q1 beat.
“Accelerating our growth is deep learning, a new computing model that uses the GPU’s (graphics processing unit) massive computing power to learn artificial intelligence algorithms,” he said in the company’s earnings release. “Its adoption is sweeping one industry after another, driving demand for our GPUs.”
Nvidia’s soon-to-be-released Pascal chip will continue that drive, he said....MORE
And from Reuters:

Nvidia profit beats on strong demand for graphics chips
Nvidia Corp (NVDA.O) reported better-than-expected quarterly profit and revenue, driven by higher demand for its graphics chips, sending its shares up more than 5 percent in extended trading.

The company has weathered a shrinking personal computer industry by focusing on game enthusiasts, who are willing to pay hundreds of dollars for processors used in playing graphically demanding games.

"We are enjoying growth in all of our platforms -- gaming, professional visualization, datacenter and auto," Chief Executive Jen-Hsun Huang said.

Revenue from its gaming business, which designs graphics cards such as GeForce for PCs, rose 17 percent to $687 million.

The company's auto unit, which makes chips and software that power dashboard displays of vehicles, performed even better, with revenue surging 46.7 percent to $113 million.

Nvidia's net income rose to $196 million, or 33 cents per share, in the first quarter ended May 1 from $134 million, or 24 cents per share, a year earlier....MORE