credit www.google.com
Financial

Market Update: Nvidia Stock Rallies, Earnings Reports Out!

Nvidia is one of the biggest gaming companies in the world. The American technology company is responsible for making viral games such as Minecraft, and the Call of Duty series. The company is changing the gaming world with its use of Artificial Intelligence. Nvidia also sells many great computers. These computers are amazing for people to play games on.

During the Coronavirus pandemic, gaming companies are seeing a rise in the number of players. Since people do not have much to do, gamers are spending most of their time playing their favourite games. Hence, many are expecting that companies like Nvidia will not have as many problems as other businesses. Many other businesses are struggling during this time.

Nvidia Stock Rallies

On Thursday, 21 May 2020, Nvidia’s stock fell by 1% in after-hours trading. The stock had closed the day at a price of 351.01 USD but fell a little after the market closed. However, the stock has since rallied on Friday, 22 May 2020. The stock started the day by rising before the market opened. The stock opened at a price of 353.05 USD, which is higher than the closing price on Thursday.

credit Nvidia

While the day is still going, Nvidia is rising fast. As of 10:43 GMT, Nvidia’s stock is at 363.27 USD, a gain of 12.26 USD or 3.49% over the previous closing price. Market analysts expect Nvidia to close the day on a strong note after a strong rally in the early stages of the trading day.

Also Read:

Market Update: Lowe’s Sales Rise, Stock Rallies Before Fall

Jack In The Box Market Update: Stock Prices Slides Down After Q2 Earnings Report

Why Did The Stock Rise?

Analysts were surprised that Nvidia’s stock fell in aftermarket trading on Thursday, 21 May 2020. This is because the fall came on the heels of Nvidia releasing their quarterly financial report. The company reported a large growth in sales in the previous quarter. Data-centre chips had an increase of 80% in sales and reported a revenue of over $1 Billion. This is an all-time high for the company.

The company is reporting a net income of $917 Million which is significantly more than the $394 Million in the same quarter last year. The company had adjusted earnings of $1.80 per share, which is more than the $1.65 per share many market experts were predicting. It is due to the expectations beat that the stock is rallying on Friday, 22 May 2020.

What Next For Nvidia?

credit www.youtube.com

Nvidia is performing extremely well at a time in which most businesses are struggling. This is garnering many favourable ratings from many analysts. Most expect the company to keep performing well. The company has shown a sound business plan to continue to develop at such a time, and they are diversifying which should help reduce the risk associated with the company.

 

About the author

Avatar

Riten