NVIDIA stock rose on February 15
NVIDIA (NVDA) stock rose 1.82% on February 15 and closed at $157.34 after the semiconductor giant reported upbeat fiscal 2019 fourth-quarter earnings results. The stock rose as high as 8% in after-hours trading on February 14, when the company made its earnings announcement.
NVIDIA stock has risen ~17.9% since the beginning of the year but has fallen nearly 36.7% in the past year, probably due to the fall in crypto demand, which led to surplus inventory. In comparison, NVIDIA’s rival Advanced Micro Devices (AMD) has risen an impressive 97%, while its graphics processing unit rival Intel (INTC) has risen 14.3% in the past year as of February 15.
NVIDIA’s fourth-quarter results
NVIDIA topped analysts’ estimates for both earnings and revenue in the fourth quarter. Its adjusted EPS of $0.80 exceeded Wall Street analysts’ estimate of $0.75 in the period. Its revenue of $2.21 billion was also ahead of the consensus estimate of $2.20 billion despite a major inventory pileup.
In the fourth quarter of fiscal 2019, NVIDIA’s adjusted earnings fell 53.5% YoY (year-over-year) and 56.5% compared to the previous quarter. Its revenue also plummeted to $2.21 billion, down 24.1% YoY and ~30.5% compared to the third quarter. The company’s results were negatively affected by excess inventory due to the end of the cryptocurrency boom and deteriorating end market conditions.