Nvidia (NASDAQ: NVDA) stock price bounced back sharply after experiencing volatility early this year. NVDA shares have extended the upside momentum after strong third-quarter results. The share price is currently trading around the highest level of this year; the analysts are forecasting steady upside gains in the following months.
Improving market trends particularly in the gaming industry is among the catalysts. Nvidia stock price rose more than 50% since the beginning of this year. Previously, NVDA shares had hit an all-time high of $270 at the end of fiscal 2018.
Q3 Beat Supported Nvidia Stock Price
The company has topped revenue and earnings estimates for the third quarter by $90 million and $0.20 per share. It has experienced a substantial growth of 26% in gaming revenues compared to the previous quarter.
Professional Visualization and data center revenue grew at a double-digit rate from the second quarter this year. On the negative side, it’s auto revenue plunged 22% from the past quarter.
“We extended our reach beyond the cloud, to the edge, where GPU-accelerated 5G, AI and IoT will revolutionize the world’s largest industries. We see strong data center growth ahead, driven by the rise of conversational AI and inference, said Jensen Huang, founder, and CEO of NVIDIA”
The latest Mellanox Technologies acquisition is likely to complete early next year – which could help it in boosting revenue growth. The company appears in a solid cash position to invest in growth opportunities. It has generated $1.5 billion in Q3 free cash flows, year to date free cash flows stood around $3 billion.
Analysts are Bullish About NVDA Shares Upside
Market pundits have raised the price targets for this semiconductor company. BMO Capital increased Nvidia’s stock price target to $200.
Analyst Ambrish Srivastava says healthy gaming business supply chain and growth from data center business would help in offsetting macroeconomic headwinds. Susquehanna, on the other hand, raised the price target to $240. On the whole, market sentiments are positive regarding NVDA shares.