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Why Nvidia Shares Are On The Move Today

NVIDIA Corp (NASDAQ:NVDA) shares are trading lower Thursday after the company reported financial results and issued guidance below analyst estimates.

Nvidia said first-quarter revenue grew 46% year-over-year to $8.29 billion, which beat the estimate of $8.12 billion, according to data from Benzinga Pro.

The chip company reported quarterly adjusted earnings of $1.36 per share, which beat the estimate of $1.29 per share. Earnings were down 15% year-over-year, but include an after-tax impact of 52 cents related to the $1.35 billion Arm acquisition termination charge.

"We delivered record results in Data Center and Gaming against the backdrop of a challenging macro environment," said Jensen Huang, founder and CEO of Nvidia.

Nvidia said it expects second-quarter revenue of $8.1 billion, plus or minus 2%, versus the estimate of $8.45 billion. The company said its forecast includes an estimated reduction of approximately $500 million related to Russia and COVID-19 lockdowns in China.

Analyst Assessment: 

  • Keybanc analyst John Vinh maintained Nvidia with an Overweight rating and lowered the price target from $310 to $250.
  • Citigroup analyst Atif Malik maintained Nvidia with a Buy rating and lowered the price target from $350 to $315.
  • Morgan Stanley analyst Joseph Moore maintained Nvidia with an Equal-Weight rating and lowered the price target from $217 to $182.
  • JP Morgan analyst Harlan Sur maintained Nvidia with an Overweight rating and lowered the price target from $350 to $285.
  • Mizuho analyst Vijay Rakesh maintained Nvidia with a Buy rating and lowered the price target from $345 to $290.
  • Cowen & Co. analyst Matthew Ramsay maintained Nvidia with an Outperform rating and lowered the price target from $350 to $265.

See Also: Nvidia Announces New Liquid-Cooled GPUs: How It Will Double Data Center Computing Power

NVDA Price Action: Nvidia has traded between $151.76 and $346.47 over a 52-week period.

The stock was down 3.89% at $163.15 at press time.

Photo: courtesy of Nvidia.