Dallas, Texas 08/11/2014 (FINANCIALSTRENDS) – NVIDIA Corporation (NASDAQ:NVDA) continued its sway, as the world’s leading graphic chip maker with a resounding second quarter financial results, on Thursday. Regarded over the expected results, investors continued to drive share prices higher, on Friday.
Second Quarter: Resounding Performance
NVIDIA Corporation (NASDAQ:NVDA) delivered on par with analyst’s expectations on the second quarterly earnings report, with in-line consensus. By the end of trading day on Friday, share prices of the low-cost chip maker had surged 9%, closing at $19 per share.
Management of Nvidia, during their earning’s call, reported that the persistence in second quarter on the growth factors was largely due to its flagship Tesla Chips followed by Tegra.
Ever since Nvidia has launched this data center-grade chip Tesla, there has been discerning increase in sales. The use of Tegra chips in the auto mobile industry too has led to the voluminous growth in sales for Nvidia.
Third Quarter: Higher Guidance Drives Rally
The consistent second quarter results, has led to analysts expecting better third quarter returns. Led by Needham & Co, Nvidia had positive coverage, with the former rating the chip maker higher than its previous rating. The analyst has moved the target price higher as well, to $23, considering the upside Nvidia has, following its move from its traditional PC market to other segments. The analyst has moved the chip maker from its previous Hold-rating to a more market-friendly Buy-rating, leading the purchasing spree for this hardware-technology stock.
The graphics-compliant chips NVIDIA Corporation (NASDAQ:NVDA) has pioneered with brilliant engineering innovation – optimizing power, but pushing down on the electricity units it guzzled to remain powerful core- has led to Nvidia’s consistent market leadership. As the makers continue to innovative, building powerful core processors which support over layering for different technology sectors, such as data centers or automobiles, it does leave the competition wanting on several technical benefits. Besides, its cost-effective price factor too adds to its domination in this segment.