NVIDIA Corp.(NVDA) listed on the Nasdaq stock exchange is down by over 40% since January 2022. The recently declared quarterly results failed to shore up the momentum after the management signaled tougher times ahead. “We are navigating our supply chain transitions in a challenging macro environment and we will get through this,” said Jensen Huang, founder and CEO of NVIDIA. The NVDA share price is down by 4.24% over the last 1-month.
Since April 2020, the NVDA stock price had zoomed to cross $330 at one point in time. From reaching a market cap of nearly $1 trillion, the company currently has a valuation of $430 billion. However, going by the experts, the NVDA stock is still highly valued.
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The company reported revenue for the second quarter ended July 31, 2022, of $6.70 billion, up 3% from a year ago and down 19% from the previous quarter. Earnings saw a major dip after the GAAP earnings per diluted share for the quarter were $0.26, down 72% from a year ago and down 59% from the previous quarter.
The Gaming segment of NVIDIA had second-quarter revenue of $2.04 billion, down 33% from a year ago and down 44% from the previous quarter.
NVIDIA will pay its next quarterly cash dividend of $0.04 per share on September 29, 2022, to all shareholders of record on September 8, 2022.
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NVIDIA plans to continue share repurchases this fiscal year 2022-23. During the second quarter of fiscal 2023, NVIDIA returned to shareholders $3.44 billion in share repurchases and cash dividends, following a return of $2.10 billion in the first quarter. The company has $11.93 billion remaining under its share repurchase authorization through December 2023.
NVIDIA’s outlook for the third quarter of fiscal 2023 expects revenue to be $5.90 billion, plus or minus 2%. Gaming and Professional Visualization revenue is expected to decline sequentially, as OEMs and channel partners reduce inventory levels to align with current levels of demand and prepare for NVIDIA’s new product generation.
The company had earlier blamed the declining demand for chips used in gaming computers because of challenging market conditions. The demand for chips and the fortunes of the semiconductor industry rest a lot on the path the technology takes in the future.
