Nvidia: shares up despite 'in line' quarter

(CercleFinance.com) - Nvidia shares are up 2% at 157.
4 dollars after the chipmaker unveiled quarterly results that are essentially in line with estimates.

Nvidia - once known for graphics cards, but which has now stepped up into markets such as AI and self-driving cars - reported revenue for the fourth quarter ended January of 2.2 billion dollars, down 24% year-on-year.

As a result, non-GAAP earnings fell to 0.80 dollar per share, down 53% from a year ago.

"The combination of post-crypto excess channel inventory and recent deteriorating end-market conditions drove a disappointing quarter," explained founder and CEO Jensen Huang.

For the first quarter of its financial year 2020, Nvidia said it expects revenue to be 2.2 billion dollars, i.e. flat quarter-on-quarter.

"The company provided a first-quarter guide weaker than our expectations," said analysts at New Street Research.

"Datacenter was disappointing and will remain lumpy, but the story we like for Nvidia is not just the data center," the research house said.

New Street Research maintains its "buy" rating and 200-dollar target price on the shares, betting on other growing business segments such as gaming, vizualisation and automobile.

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