Zacks Investment Ideas feature highlights: Nvidia

For Immediate ReleaseChicago, IL – November 20, 2024 – Today, Zacks Investment Ideas feature highlights Nvidia NVDA.Will Data Center Results Drive Nvidia Shares Higher?It’s nearly time again for beloved Nvidia to deliver its quarterly results, with the release undoubtedly the most closely watched of the Q3 cycle. Other players involved in the AI frenzy have delivered their results, which have overall shown underlying momentum and robust demand.How does the AI favorite stack up heading into its release? Let’s take a closer look.Nvidia Data Center in FocusNvidia’s Data Center results have continued to be remarkable, consistently blowing away our consensus expectations in recent quarters. As shown below, the beats have been quite sizable, with the most recent totaling a sizable $1.4 billion amid another period of scorching-hot demand.Investors can likely expect another robust showing within its Data Center, with our $28.9 billion consensus estimate suggesting nearly 100% growth year-over-year.CEO Jensen Huang provided a bullish long-term comment following the Q2 release, confirming strong demand for Hopper and overall anticipation for Blackwell. ‘NVIDIA achieved record revenues as global data centers are in full throttle to modernize the entire computing stack with accelerated computing and generative AI.’While Data Center results will undoubtedly take center stage, the company’s Gaming segment has shown nice growth over recent periods, another key metric to watch in the release. For the quarter, the Zacks Consensus Estimate for Gaming revenues stands at $3.1 billion, 10% higher than the year-ago figure.NVDA’s Gaming results have consistently been positive against expectations as of late.The company’s margins have also been historically strong in recent quarters, aiding its profitability picture in a big way.Given its historical rise, the valuation picture has become a concern among some. Still, multiples aren’t expensive on a relative basis, with the current 38.7X forward 12-month earnings multiple well beneath the 50.7X five-year median and five-year highs of 106.3X.In addition, the current PEG ratio works out to 1.1X, again well below the 2.6X five-year median and 5.5X five-year highs. The multiple even compares favorably to the Zacks Computer & Technology sector average of 1.5X.Bottom LineBeloved Nvidia is on the reporting docket this week, with its results scheduled for after the market’s close on Wednesday. The company’s results will finally wrap up the reporting period for the broader Mag 7 group, also representing the most important release of the bunch.The company’s outlook continues to remain bullish, with the stock sporting a Zacks Rank #1 (Strong Buy) heading into the release.Investors can expect extensive commentary surrounding Data Center results, which have fueled the company’s meteoric rise over the last several years. It’s reasonable to assume that it will be another record-breaking period for its Data Center, supported by bullish commentary from CEO Jensen Huang in its Q2 release.In addition, the company’s Gaming results should also get some attention from investors, which have rebounded nicely over recent periods and consistently exceeded consensus expectations.The valuation picture isn’t unattractive, with current multiples well below historical values. It’s worth noting here that NVDA shares traded well above current valuation levels in 2020 and 2021 when the AI theme had yet to emerge fully. Historically strong growth has helped keep multiples now.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks