Rather surprisingly, NVDA has mainly let cash generated flow to its balance sheet. The company expects automotive revenue growth to see sequential improvement over time.Ĭryptomining processor revenue was $24 million in the quarter, down from $105 million sequentially and the estimated $100 million to $300 million in the year prior. This is especially evident in the struggling revenues in the automotive department, as NVDA was held back by supply chain issues. Data center revenue has quickly risen from barely significant to coming on the verge of surpassing gaming revenue.Īnd yet, the growth may be understated. Instead, it has been its data center business that shines brightest. Surprisingly, the results were held back by its gaming division, which is typically thought of as its bread and butter. NVDA closed out its 2022 fiscal year with strong 53% revenue growth and 103% EPS growth. Yet it is undeniable that the stock also benefited from multiple expansion - we can see the dramatic increase in the price to sales ratio over the past few years. The pandemic helped accelerate the move to the digital world, with NVDA as a prime beneficiary.
It recently changed hands around $235 per share, representing a 300% gain in just over two years. NVDA started 2020 trading at around $59 per share.
That might not be so easy, even for a company with such strong execution. Can the stock keep up the strong price performance, or will it soon run out of steam? At current prices, the stock appears to be pricing in material beats to consensus estimates, especially considering where the rest of tech trades. The company generated impressive growth in 2021 and has guided for strong growth to continue in the next quarter. At least, that is what seems to explain the stock’s meteoric rise in only two years time and the rich multiple that it currently trades at. NVIDIA ( NASDAQ: NVDA) has transformed itself from what used to be a cyclical stock to a secular growth story.
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