Why Nvidia Shares Are Ripping Higher Today

NVIDIA Corp NVDA is trading higher Thursday after the company announced better-than-expected third-quarter fiscal 2022 financial results and issued guidance above estimates. 

Nvidia reported quarterly adjusted earnings of $1.17 per share, which beat the estimate of $1.10 per share. The company reported quarterly revenue of $7.1 billion, which beat the estimate of $6.83 billion, representing a 50% increase year-over-year.

Nvidia expects fiscal fourth-quarter revenue of $7.4 billion, plus or minus 2%, versus the estimate of $6.86 billion.

"Demand for NVIDIA AI is surging, driven by hyperscale and cloud scale-out, and broadening adoption by more than 25,000 companies. NVIDIA RTX has reinvented computer graphics with ray tracing and AI, and is the ideal upgrade for the large, growing market of gamers and creators, as well as designers and professionals building home workstations," said Jensen Huang, founder and CEO of Nvidia.

Analyst Assessment: Multiple analyst firms raised price targets on the stock following Nvidia's strong financial results:

• Keybanc analyst John Vinh maintained Nvidia with an Overweight rating and raised the price target from $260 to $350.
• Piper Sandler analyst Harsh Kumar maintained Nvidia with an Overweight rating and raised the price target from $260 to $350.
• Mizuho analyst Vijay Rakesh maintained Nvidia with a Buy rating and raised the price target from $235 to $335.
• Raymond James analyst Chris Caso maintained Nvidia with a Strong Buy rating and raised the price target from $225 to $365.
• Needham analyst Rajvindra Gill maintained Nvidia with a Buy rating and raised the price target from $245 to $400.
• Truist Securities analyst William Stein maintained Nvidia with a Buy rating and raised the price target from $360 to $389.
• Deutsche Bank analyst Ross Seymore maintained Nvidia with a Hold rating and raised the price target from $185 to $285.

See Also: Nvidia Analyst Raises Price Target By 78%: 'Chipmaker Has Largest TAM Expansion Opportunity In All Of Tech'

NVDA Price Action: Nvidia has traded as high as $323.10 and as low as $115.66 over a 52-week period.

The stock was up 9.24% at $319.70 at time of publication.

Photo: courtesy of Nvidia.