Why Nvidia Shares Are On The Move Today

NVIDIA Corp 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.